Careers in Supply Chain Management 2008

CAREERS IN SUPPLY CHAIN MANAGEMENT ★ ★ INSIDER ★ ★ ★ ★ INDUSTRY TRENDS AND RANKINGS PROFILES OF LEADING COMPANIES CUL...

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CAREERS IN SUPPLY CHAIN MANAGEMENT ★

★ INSIDER

★ ★ ★ ★

INDUSTRY TRENDS AND RANKINGS PROFILES OF LEADING COMPANIES CULTURE AND COMPENSATION THE RECRUITING PROCESS

SCOOP: FRONT-LINE REPORTS ★

Insider

Guide Careers in Supply Chain Management

2008 EDITION

Careers in Supply Chain Management

WetFeet, Inc. 1518 Walnut St. Suite 1800 Philadelphia, PA 19102 Phone: (215) 546-4900 or 1-800-926-4JOB Fax: (215) 546-9921 Website: www.wetfeet.com

Careers in supply chain management 2008 Edition ISBN: 978-1-58207-849-6

Photocopying Is Prohibited

Copyright 2008 WetFeet, Inc. All rights reserved. This publication is protected by the copyright laws of the United States of America. No copying in any form is permitted. It may not be reproduced, distributed, stored in a retrieval system, or transmitted in any form or by any means, in part or in whole, without the express written permission of WetFeet, Inc. The publisher, author, and any other party involved in creation, production, delivery, or sale of this WetFeet Insider Guide make no warranty, express or implied, about the accuracy or reliability of the information found herein. To the degree you use this guide or other materials referenced herein, you do so at your own risk. The materials contained herein are general in nature and may not apply to particular factual or legal circumstances. Under no circumstances shall the publisher, author, or any other party involved in creation, production or delivery of this guide be liable to you or any other person for damages of any kind arising from access to, or use of, its content. All illustrations by mckibillo


CHAPTER

1 23 1 At a Glance

5 The Industry

15 The companies

2 Supply Chain Management at a Glance

6 Overview

16 Manufacturing Companies

6 The Bottom Line 29 Retail Companies 7 Industry Breakdown 8 Industry Rankings

38 Transportation and Logistics Companies

10 Trends in the Field 11 Picking and Choosing


conte 2008 EDITION

45 6 7

49 on the job

65 The workplace

71 getting hired

77 For your reference

50 The Big Picture

66 Lifestyle and Hours

72 Getting in the Door

50 Key Jobs

66 Workplace Diversity

72 The Recruiting Process

83 Articles

57 Real People Profiles

67 Compensation and Benefits

73 Interview Tips

83 Books

67 Career Path

74 Getting Grilled

68 The Inside Scoop

74 Grilling Your Interviewer

84 Professional Organizations and Communities

78 Industry Jargon

nts

At a Glance

1

At a glance The IndustrY The companies On the Job


Supply Chain Management at a Glance

•

Jobs abound across a number of industries.

•

In addition to traditional manufacturing and distribution firms, a number of fast-growing and innovative companies find supply chain management integral to their strategy and success.

Opportunity Overview

•

Supply chain managers are well-compensated.

Positions in supply chain management require a specific skill set attained through specialized education programs (such as supply chain management concentrations) or work experience. •

•

The Workplace

•

•

Major Minuses •

It’s a long road to the top—there aren’t many thirty-somethings with VP or even director titles.

•

Undergraduates often start in roles such as business analyst, inventory coordinator, or customer service specialist.

The educational barriers to entry are high—many positions require specialized training such as a degree in supply chain management.

•

MBAs and graduate degree holders are often put into management rotations across supply chain disciplines or in program management roles.

The opportunities for advancement tend to be limited. Vice president of supply chain management is typically as high as one can go.

•

There is significant opportunity for overseas assignments.

It’s somewhat difficult to transfer across industries within the supply chain management function.

•

Specialization makes it difficult to transfer across roles within the supply chain management function.

•

In some job functions, especially in transportation, the hours can be long and unpredictable.

Supply chain management professionals have remained in demand through the weak economy of the past three years.

FOR YOUR REFERENCE

Getting Hired

Major Pluses •

You move real things across oceans and continents.

•

You can problem-solve to your heart’s delight.

•

A career in supply chain management doesn’t tie you to a particular geography—opportunities are spread throughout the country.

• •

Jobs tend to be in low cost-of-living cities. International assignments are not only available, they are encouraged.

W E T F E E T I N SIDER GUIDE

Recruiting Overview •

•

•

Supply chain management firms typically have structured recruiting programs for undergraduate, MBA, and midcareer hires. Companies conduct on-campus recruiting for MBAs in supply chain management. Companies conduct on-campus recruiting for

At a glance

Midcareer candidates with the right skill set will find themselves in high demand.

•

MBA opportunities often include a management rotation program.

•

Companies that recruit on campus typically have a set of target schools from which they cull candidates.

The companies

•

The Industry

business undergraduates with specializations in supply chain management.

On the Job The Workplace Getting Hired FOR YOUR REFERENCE

WETFEET INSIDER GUIDE

The Industry

2

Overview...........................................6 The Bottom Line...............................6 Industry Breakdown..........................7

Industry Rankings.............................8 Trends in the Field..........................10

Picking and Choosing.....................11

At a glance The IndustrY The companies On the Job The Workplace Getting Hired FOR YOUR REFERENCE


Overview Behold leaf cutter ants. At the command of their queen, the ants march in lockstep, cut leaves from rainforest trees, and, in a perfectly ordered line, carry the right number of tasty leaves in their mandibles back to the colony and their discerning queen. As a species, humans have no such innate sense of how to move products from their source to end users. Supply chain managers seek to create what ants do naturally: They attempt to integrate and optimize all the steps required to produce the right amount of the right product and deliver it to the end user at the right time. In other words, supply chain management (SCM) is involved in every aspect of getting products to customers, from raw materials to consumption. As one insider defines it, “Supply chain management is interested in everything that happens to a product from cradle to grave.” Whereas the field of logistics was born in World War II as part of the effort to get the right amount of supplies to the troops at the right time, supply chain management took the novel approach of looking further back into the life of a product to its manufacture and even product design while integrating what were once thought to be unrelated disciplines: marketing and customer service. The focus of this guide is supply chain management and its constituent functions. We will also look at the industries and companies who rely on supply chain management to remain competitive in the marketplace: manufacturing, retailing, and transportation. In the field of retailing, Wal-Mart, the largest company on the Fortune 500, has elevated supply chain management to a strategic imperative—a tactic responsible for much of the company’s success. By carefully managing its suppliers and distribution practices, it has been able to reduce its costs and offer its customers products at prices far below those of any other retailer. In the manufacturing industry, Dell has become the largest computer maker in the world based on the simple conceit of eliminating retailers


and distributors; in doing so, Dell reduced inventory costs on highly obsolescent products. In much the same way, Amazon.com’s success is due to its exploitation of inefficiencies in the supply chain for a number of categories of goods. Finally, transportation and logistics companies themselves revolutionized the way people do business. DHL, for instance, recognized that processing of international customs papers in foreign ports would often hold up shipments for weeks. It solved this problem by flying customs papers ahead of shipments for processing, so that the paperwork would already be completed by the time a ship arrived at port, allowing it to be unloaded immediately. While supply chain management has had a huge impact on these three industries, the SCM function, with roles such as procurement manager, logistics analyst, materials manager, warehouse manager, inventory analyst, and of course, supply chain manager, remains somewhat unheralded.

π A hidden business gem? Supply chain management is in some ways one of the best kept secrets of business. This is due in part to the specialization of functions within the discipline—SCM professionals require substantial training and often spend

entire careers within a single role such as procurement specialist. Supply chain management’s lack of renown is also due to the fact that it is a cross-functional field that doesn’t really fit in to a single category the way marketing or finance does.

The Bottom Line The outlook for supply chain management looks healthy. However, in the case of midcareer job seekers, most companies look for candidates with coursework

aT a glaNcE

Many.industries,.including.services such as

maNuFacTurINg cOmpaNIEs Manufacturing is a broad term. Virtually any

rETaIl cOmpaNIEs Retailers, in our definition, are merchandisers that sell products to end users. Categories of retailers include discount retailers such as Wal-Mart and Target; warehouse formats such as Costco and Sam’s Club; specialty retailers such as Gap, Starbucks, WETFEET INSIDER GUIDE

FOr yOur rEFErENcE

banks and restaurant chainsuse logistics functions, but we have focused our survey on three industries that are truly dependent on supply chain management: manufacturing, retail, and logistics and transportation companies.

According to a recent Ohio State University poll, manufacturing firms employ 76 percent of logistics executives.

gETTINg hIrED

Industry BreakdOwn

ThE WOrkplacE

Detail orientation is always a necessity for supply chain jobs—you can’t overdo attention to detail when communicating with prospective employers, either in informal conversations or during the interview process. Finally, because of the cross-functional nature of the field, communication and people skills are paramount.

ON ThE jOb

Those interested in entering the field should look for opportunities in burgeoning subsectors such as specialty pharmaceuticals and medical device manufacturing.

ThE cOmpaNIEs

> tIp

process that turns a raw material into a finished product through use of a machine can be considered manufacturing. If you look around at the objects strewn about the room in which you’re currently sitting, you’ll see that quite a few things are manufactured. However, we can break down the types of manufacturing based on what companies produce or by industry; how they produce it, discrete or flow; and the level of engineering effort required to manufacture it. The universe of manufacturing includes the galaxies of aerospace and defense, automobile and transportation, chemicals and metals, consumer goods, electronics and high tech, industrial and farm equipment, and medical and biotech. Generally, sectors that involve technology and are less mature (especially biotech and medical manufacturing) are high-growth opportunities, whereas those that have reached maturity (chemical and metals, for instance) are waning and have seen much of their growth exported overseas. Manufacturing companies typically emphasize materials management and sourcing functions. Additionally, the majority of overseas opportunities reside with manufacturing firms.Manufacturers employ the largest number of supply chain professionals , although this number is decreasing.

ThE INDusTry

in supply chain management or prior industry and functional experience. These prerequisites limit the number of qualified candidates in the field. While no role clearly outshines the others in terms of employer demand, more and more companies are reorganizing around supply chain management (as opposed to logistics or materials) and so supply chain manager roles are becoming more prevalent. Clearly, proficiency in an enterprise resource planning (ERP) software package such as SAP, Oracle, or i2 greatly enhances your marketability.

7

At a glance The IndustrY The companies

and Home Depot; general merchandisers such as Federated Department Stores; and Internet retailers such as Amazon.com. Roles within the retail and merchandising industries tend to emphasize logistics, warehousing, and inventory management.

Logistics and Transportation Companies Logistics and transportation firms provide all or some portion of logistics and/or shipping functions for client firms. Types of logistics firms include assetbased carriers such as Canadian National Railway, FedEx, and UPS; non-asset-based carriers such as C.H. Robinson and Expeditors International; and warehousing firms such as Preferred Freezer Services. Like retailers, the roles of logistics firms emphasize (what else?) logistics, inventory management, and warehousing. Most larger firms offer the entire range of logistics services from transportation and carrier services to warehousing and inventory management.

Getting Hired

The Workplace

On the Job


Industry Rankings The following lists show key companies in several industries that rely heavily on supply chain management for success—manufacturing, retail, and logistics and transportation. Top Manufacturing Companies Company

2006 Revenue ($M)

Employees

General Motors

207,349

280,000

General Electric

163,391

319,000

Altria Group

101,407

175,000

Hewlett-Packard

91,658

156,000

IBM

91,424

426,969

Nestlé S.A.

80,716*

253,000

BMW

64,644

106,575

Procter & Gamble

68,222

138,000

Dell Inc.

57,420

66,100

Johnson & Johnson

53,324

122,200

Pfizer

48,371

98,000

Microsoft

44,282

71,000

Intel Corporation

35,382

94,100

Nike, Inc.

14,955

28,000

Solectron Corporation

10,561

44,500

FOR YOUR REFERENCE

Sources: Hoover’s; WetFeet analysis. * Most recent data available.


At a glance

315,654

1,900,000

The Home Depot, Inc.

90,837

364,000

Kroger

66,111

310,000

Costco

60,151

127,000

Target

59,490

338,000

Lowe’s

46,927

210,000

Best Buy

35,934

140,000

Macy’s Inc.

26,970

188,000

J.C. Penney

19,903

155,000

Kmart

18,647

45,000

Staples

18,161

73,646

Gap Inc.

15,943

154,000

Office Depot

15,011

52,000

Amazon.com

10,711

13,900

Starbucks

7,787

145,800

2006 Revenue ($M)

Employees

U.S. Postal Service

72,650

696,138

United Parcel Service

47,547

428,000

DHL

33,524*

171,980

FedEx

32,294

143,000

Union Pacific Corp.

15,578

50,739

Con-way Inc.

4,222

21,800

Ryder System

6,307

28,600

Canadian National Railway Co.

6,621

21,811

C.H. Robinson Worldwide

6,556

6,768

Schneider National

3,700

21,600

J.B. Hunt

3,328

5,916

Sources: Hoover’s; WetFeet analysis. *2004 figure.

Sources: Hoover’s; WetFeet analysis.

The Workplace

Wal-Mart Stores, Inc.

Company

On the Job

Employees

The companies

2006 Revenue ($M)

Company

The Industry

Top Transportation and Logistics Companies

Top Retail Companies

Getting Hired FOR YOUR REFERENCE




Trends in the Field We compiled the following trends through our research and by polling insiders on what they think are the biggest developments in their field. RFID RFID is a system of tags (small chips embedded in products) and readers that decode information. In RFID, a tag is encoded with information about a product. As a reader passes by a tag, it emits a radio signal that stimulates the tag and momentarily powers it, allowing it to send back data. A reader can also update a tag with information. Similar technology is used in FastPass and E-ZPass cards and readers in tollbooths on the East and West Coasts. The potential uses for RFID include providing increased information about products, auditing products through the supply chain by automatically adding data to a card every time it’s read, and eventually supplying better data on consumer purchases. When first introduced, RFID showed a lot of promise and had many industry insiders expecting drastic changes in the ways companies handled supply chains. But in reality, most people were at first underwhelmed with the technology, in great part because it did not save as much time and money as was first expected. In 2003, however, retail giant Wal-Mart outlined a plan to require its top suppliers to implement RFID-based tracking systems by 2005. Instituting the change wasn’t without obstacles, but RFID’s popularity has picked up in recent years because of it. In early 2008, Wal-Mart announced it would further expand the program. Consumer advocate and privacy groups are protesting the use of RFID due to fears that the technology will be used to track consumers in ways they do not want or cannot imagine. 10


Six Sigma Quality According to General Electric, Six Sigma is a “disciplined methodology of defining, measuring, analyzing, improving, and controlling the quality in every one of the company’s products, processes, and transactions—with the ultimate goal of virtually eliminating all defects.” Sigma is the Greek symbol for standard deviation. Six Sigma refers to controlling a process to six standard deviations, which translates into 3.4 defects per million—in other words, a maniacal focus on quality. Bill Smith, a reliability engineer at Motorola in the early 1980s, developed Six Sigma. During routine testing, Smith saw that products were failing at a much higher rate than was predicted. He hypothesized that increased system complexity might be the cause of the failure. His solution was to build controls into the system so the process could be measured and acted on before a final product was produced. He convinced Motorola management to adopt the program, and the rest is history. Six Sigma is still catching on in both manufacturing and retail organizations, though many large companies including 3M, Amazon.com, and Ford claim to have successfully implemented the methodology. Some companies are enamored of Six Sigma. Others aren’t, but nonetheless seek Six Sigma experience when hiring at the analyst level and higher.

Increased Role of Technology Supply chain networks continue to increase in size and complexity, which has led to a need for improved specialized technology. As a result, solution providers have made sizable investments into developing new software solutions. New transportation management systems (TMS) and network optimization programs have helped the industry improve performance and drive cost reductions. TMS programs allow shippers to automate planning and reduce freight costs through optimal mode selection. Network optimization software helps supply chain systems find a balance between costs and services.

At a glance

Lean Manufacturing

You Are What You Make or Sell What a company builds or sells, quite obviously, will

“At the grocery store chain I worked at, our sense of thrift was so strong that the CFO and I shared a hotel room when we’d go on site visits.”

Sizing Up the Territory The size of companies in the manufacturing, retail, and logistics industries varies dramatically, from behemoths that are perennially among the very largest companies in the country (and world) to startups with handfuls of employees, and everything in between. This variance in size corresponds to an equally large range of opportunities, career paths, and workplace environments that are open to you. The largest firms, WETFEET INSIDER GUIDE

11

FOR YOUR REFERENCE

chain management, the following considerations will help you narrow down your choices in terms of function, geography, industry, and company.

INSIDER SCOOP Getting Hired

Once you’ve decided to pursue a career in supply

The Workplace

Picking and Choosing

On the Job

Though contract manufacturing is not a new concept, its scope continues to increase. Companies such as Solectron and Flextronics already manufacture computers and electronics for companies such as HP, Cisco, and Apple. Now, however, these companies are seeking to expand by tapping new markets, such as consumer electronics and automobile parts, and adding supply chain and materials management services to their offerings. Within the automotive industry, companies like BMW are already experimenting with outsourced production.

The companies

Expanded Outsourcing

tell you a lot about the company you’re going to work for. Since people go into supply chain management at least partly because they are excited by the prospect of working with tangible products, it makes sense that you should know, be comfortable with, and even excited by what your firm makes or sells. Specialty manufacturers tend to hire people with an interest in their products—an athlete might work at Nike, a bibliophile at Amazon.com, a fashionista at Gap. Of course, some companies, such as Raytheon and Boeing, make bombs—so if you have moral qualms about making weapons, you should consider working at one of the many other companies that employ supply chain professionals. What the company makes also has a bearing on what kind of culture the company embraces. At least in part, companies embrace the culture that their product suggests. Therefore, a sports apparel seller might have a playful, outdoorsy culture. Medical product manufacturers demand a high degree of ethical integrity from their workers—after all, their products are involved in life and death matters. Companies with technically complex and novel products (ones whose technology is new) tend to have cultures that are looser and that try to foster a greater sense of creativity than more established companies. Discount retailers tend to inculcate their workers with, if not exactly parsimony, a cost-cutting ethos.

The Industry

Lean manufacturing was developed by Toyota and its Toyota Production System more than a decade ago. Traditional manufacturing methodologies stress high utilization of machinery with slim regard for cycle time or manufacturing waste. Lean manufacturing, on the other hand, stresses reduced cycle times and waste. Cycle time refers to the amount of time that it takes to complete a set of operations. So, in lean manufacturing, the goal is not to push more goods through a process—say the painting area of an automobile assembly line—but rather to develop a better process. Similarly, lean manufacturing attacks root causes by identifying seven wastes: overproduction, transportation, motion, waiting, processing, inventory, and defects.

aT a glaNcE ThE INDusTry ThE cOmpaNIEs ON ThE jOb ThE WOrkplacE

such as Wal-Mart, GE, and General Motors, offer structured management training programs and the ability to move through a number of roles. GE is known as one of the top management training grounds anywhere, as is Procter & Gamble. Small companies offer the excitement of a startup coupled with the ability to move up the org chart more quickly.

WhErE ThE jObs arE Supply chain jobs are located around the country, and even around the world, so picking an industry sector can draw you into a particular region of the country. The headquarters of automotive giants are huddled around Detroit; aerospace manufacturers hang their hats in the Southwest; medical and specialty electronics manufacturers find themselves near the brain trust of Cambridge, Massachusetts, and other college towns; traditional manufacturers are strewn throughout the Northeast—the Rustbelt; retailers tend to be located in the Southwest and Midwest; pharmaceutical companies in New Jersey; and technology companies in Silicon Valley and Boston. Many logistics companies are headquartered in the Midwest or eastern U.S. Remember that FedEx chose Memphis as its first hub not because of the blues or barbeque, but because of its proximity to most major U.S. markets—Memphis is just an overnight truck drive from 75 percent of the souls residing in the U.S. Memphis has since marketed itself as “America’s Distribution Center.” Other logistics powerhouses also operate out of the Midwest: Union Pacific calls the shots from Omaha, Nebraska; C.H. Robinson

> tIp Many major companies such as Nike and HP operate distribution centers out of noted transportation hubs such as Memphis. Because switching industries is not the simplest of endeavors in supply chain, selecting your industry/ location carefully can save you a lot of headaches in the long run.

FOr yOur rEFErENcE

gETTINg hIrED


12


from Eden Prairie, Minnesota; Schneider National from Green Bay, Wisconsin. And Canadian National Railway, which operates from coast to coast and from Canada to the Gulf of Mexico, has its U.S. headquarters in Illinois.

makE, sEll, Or sEND Manufacturing, retail, and logistics firms all have different versions of supply chain management. In general, manufacturing firms tend to stress the materials and purchasing aspects of the field, whereas retailers and merchandisers tend to stress warehousing and logistics. As the name implies, logistics firms focus on the procurement, maintenance, and transportation aspects of the supply chain.

pEOplE Or NumbErs Although most disciplines within supply chain management require a strong analytical facility and strong people skills, the mix of skills varies significantly across roles. Candidates who are practical and have superb people skills should consider warehouse or transportation management roles. Candidates who are strong negotiators would do best in a vendor management-type role such as purchasing manager, whereas those who are highly analytical do best in a role such as inventory specialist. Those who excel at both analysis and communication and leadership can do well in the supply chain manager role.

At a glance

The Industry

The companies

On the Job

The Workplace

Getting Hired

FOR YOUR REFERENCE

13


The Companies

3

Manufacturing Companies.............16 Retail Companies........................... 29 Transportation and . Logistics Companies...................... 38

Manufacturing Companies

The IndustrY

At a glance


FOR YOUR REFERENCE

Getting Hired

The Workplace

On the Job

The companies

The companies profiled here represent a sampling of top companies that rely heavily on supply chain management to succeed: manufacturing, retail, and transportation and logistics companies. We chose companies in each category based on the company’s size, growth prospects, financial health, desirability as a place to work, and reputation for hiring supply chain professionals.

16


At a glance

120 Park Avenue New York, NY 10017 Phone: 917-663-4000 www.altria.com

2006 revenue: $101,407 million (from $97,854) 1-year change: 3.6 percent

Personnel Highlights

Number of employees: 175,000 (from 199,000) 1-year change: - 12 percent

2007 Altria Group and Philip Morris USA reaffirm their support for federal regulation of tobacco products.

Philip Morris USA launches a new advertising campaign featuring QuitAssist, a 48-page guide that provides information to smokers who want to quit.

2006 Philip Morris acquires 96.65 percent of Coltabaco, the largest tobacco company in Colombia.


17

FOR YOUR REFERENCE

2005 Dade County Circuit Court finds Philip Morris USA and other cigarette manufacturers not responsible for injuries a flight attendant claims were caused by her exposure to environmental tobacco smoke.

Getting Hired

Key Financial Stats

2008 Federal Trade Commission approves Kraft Foods’ sale of Post Cereals to Ralcorp Holdings for $1.7 billion.

The Workplace

π at a glance

Recent Milestones

On the Job

Philip Morris may have changed its name to Altria in 2003 to highlight the fact that it’s more than a cigarette maker, but the company still gets more than 75 percent of its sales from domestic and international tobacco operations. The group serves as an umbrella organization for Philip Morris USA, Philip Morris International, and Philip Morris Capital. Its tobacco empire includes the Marlboro, Virginia Slims, Parliament, Chesterfield, and Basic cigarette brands. It is in the process of buying U.S. cigar maker John Middleton. Additionally, Altria owns a 29 percent stake in SABMiller plc, the second-largest brewer in the world and maker of such brands as Miller Lite, Pilsner Urquell, and Peroni. The company completed its long-awaited spinoff of Kraft Foods in 2007. Kraft’s major brands include Kraft, Maxwell House, Oscar Mayer, Nabisco, Philadelphia, Jacobs, and Post Cereals, to name (more than) a few. The split between tobacco and

The companies

Overview

food operations was conceived in 2001, as tobacco litigation was reaching a peak; the rationale was to shield food operations from the drag of the litigation. Domestic suits against all tobacco makers currently stand at nearly $250 billion in penalties. In a June 2003 lawsuit in Illinois, a judge ordered Philip Morris to pay $10 billion in damages and post a $12 billion bond. The company appealed the verdict and the bond was lowered. This scenario has been repeated time and again in the tobacco industry, and Altria’s phalanx of legal counselors has kept juries from bankrupting the company.

The Industry

Altria Group, Inc.

At a glance The IndustrY The companies On the Job The Workplace

Bayerische Motoren Werke AG (BMW) Petuelring 130 D-80788 Munich, Germany Phone: +49-89-382-0 www.bmw.com U.S. Headquarters: BMW of North America, LLC 300 Chestnut Ridge Road Woodcliff Lake, NJ 07677 Phone: 201-307-4000

Overview The motors that BMW’s middle initial stands for started off not as the automobile and motorcycle motors for which the company is now famous, but as the motors that spun the propellers on aircraft. The blue and white fields of the firm’s logo, a

π at a glance Key Financial Stats

2006 revenue: $64,644.4 million 1-year change: 17 percent


Number of employees: 106,575 1-year change: 0.7 percent

FOR YOUR REFERENCE

Getting Hired


18


stylized version of a propeller spinning, attest to this. Nowadays, the company’s reach extends far beyond the BMW name to Rolls Royce and MINI. BMW has owned the rights to the Rolls Royce name since 1998, but has only been producing the car itself since 2003; before then, Volkswagen made the famed luxury sedan. BMW began producing automobiles in the U.S. in 1995 with the opening of its Spartanburg, South Carolina, plant. The plant, into which BMW pumped $800 million, spits out Z3, M, and X5 models. After a challenging 2005, during which the automaker saw profits drop by about 6 percent, BMW has consistently seen increased sales, including ones that broke records in 2006. Not bad for a company that started the post–World War II years making threewheeled vehicles.

Recent Milestones 2008 Receives three sustainability awards from the SAM Group 2007 Achieves record sales in Asia and the Middle East 2006 Appoints Dr. Norbert Reithofer as chairman of the board of management 2005 Board of management announces it will buy back up to 20,232,722 shares of stock.

At a glance

1 Dell Way Round Rock, TX 78682 Phone: 512-338-4400 www.dell.com

The story is ingrained in corporate legend: Michael Dell, student at the University of Texas at Austin, selling made-to-order computers from his dorm room and turning that model into a multi-billion-dollar corporation. Indeed, the company bearing Michael Dell’s name has become the foremost PC maker in the world, with Dell himself still retaining

Key Financial Stats


Number of employees: 66,100 1-year change: 18 percent

2008 Closes its 140 kiosks in the U.S. to focus on direct and retail business 2007 Michael Dell assumes duties as CEO; replaces Kevin Rollins. 2006 Donald J. Carty named vice chairman and CFO.

The Workplace

2006 revenue: $57,420 million 1-year change: 13.6 percent

Recent Milestones

On the Job

π at a glance

The companies

Overview

approximately 10 percent of the company. Dell Inc., formerly known as Dell Computer, is still one of the largest computer makers in the world. However, as the name change implies, Dell’s products reach far beyond just desktop and notebook PCs. Dell’s offerings include printers, storage devices, servers, accessories, and handheld computing devices. The company has aimed to increase its software business in recent years, acquiring both ASAP Software in and MessageOne 2008. Though direct sales remain at the heart of Dell’s business, a broader strategy has emerged since Michael Dell returned to lead the company in early 2007, after CEO Kevin Rollins resigned. Dell ranks number 34 on the Fortune 500 (2007).

The Industry

Dell Inc.



19



General Electric Company 3135 Easton Turnpike Fairfield, CT 06828 Phone: 203-373-2211 www.ge.com

Overview General Electric is the grandfather of all electronics companies and one of the most recognized brand names in the world, tracing its origins back to Thomas Edison. Nevertheless, GE is known throughout the world as the house that Jack built—Jack Welch, that is. The corporate giant that Welch made into an empire includes the subsidiaries GE Capital Corporation, one of the world’s largest financial services companies and itself divided into four units (GE Commercial Finance, GE Consumer Finance, GE Insurance, and GE Equipment Management); GE Appliances, known for its “we bring good things to life” advertising campaign; the National Broadcasting Company (NBC); GE Aircraft Engines; GE Consumer Products; GE Industrial Systems; GE Medical Systems, an $8 billion company; GE Power Systems; GE Specialty

π at a glance

Materials; and GE Transportation Systems. Current CEO Jeff Immelt, Welch’s handpicked successor, has done an admirable job of keeping GE’s ship (powered of course by GE engines) on course. In recent years, Immelt has helped the company grow in the areas of biotechnology, renewable energy, nanotechnology, and digital technology. Like his former boss, he has also pursued international growth in China, India, Europe, Africa, and the Middle East. Citing rising costs, GE sold its advanced materials unit to Apollo Management and its GE Plastics unit to SABIC Innovative Plastics in 2007. At the same time, Immelt has worked to build some of the organization’s more traditional businesses by purchasing aircraft systems maker Smiths Aerospace, oil and gas production equipment supplier Vetco Gray, and U.S. natural gas distribution network Kinder Morgan.

Recent Milestones 2008 Announces 500-percent increase in wind energy business since its 2004 inception 2007 Sells GE Plastics unit to SABIC Innovative Plastics for more than $11 billion




FOR YOUR REFERENCE

Getting Hired

Key Financial Stats

20


Acquires aircraft systems manufacturer Smiths Aerospace

2006 Divests entire stake of Genworth Financial

Sells most of its remaining insurance businesses, including GE Insurance Solutions and Employers Reinsurance

At a glance

1 General Mills Boulevard Minneapolis, MN 55426 Phone: 763-764-7600 www.generalmills.com

Recent Milestones 2007 Pulls reduced-sugar children’s cereals from the market Acquires UK chilled pastry company Saxby Bros

2006 Ken Powell is named president and COO

π at a glance

Key Financial Stats



2005 Sells Lloyd’s Barbecue to Hormel Foods

Getting Hired


Places third on Fortune’s list of “America’s Most Admired Companies”

The Workplace

Working Mother magazine names General Mills as a 2007 “Best Company for Multicultural Women” for the fourth consecutive year.

On the Job

One of the largest food companies in the world, General Mills is the nation’s second-largest cereal maker after Kellogg. The company is a global food powerhouse, with more than 100 consumer brands in the U.S., operations in more than 30 countries around the world, and exports to 130-plus countries. General Mills has organized itself into nine major business units: Big G Cereals, Meals, Snacks, YoplaitColombo, Pillsbury, Small Planet Foods, Bakeries and Food Service, and International. The company’s brands include not only those that festoon the commercial space of Saturday morning cartoons (Wheaties, Honey Nut Cheerios, Lucky Charms, Kix, Fruit RollUps), but also Betty Crocker, Pillsbury, Muir Glen, Cascadian Farms, and Häagan-Dazs.

The companies

Overview

Most of General Mills’ brands can be found in supermarkets, but the company has more recently entered the natural foods market by acquiring its Small Planet subsidiary, which produces brands Muir Glen and Cascadian Farms. In 2007, General Mills pulled its reduced-sugar children’s cereals because of poor performance. It also announced the removal of the flavor chemical dicetyl, which was suspected of causing lung problems for plant workers, from its Pop-Secret microwave popcorn products.

The Industry

General Mills, Inc.

Sells Haagen-Dazs ice cream shop franchise business in the U.S.

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General Motors Corporation 300 Renaissance Center Detroit, MI 48265 Phone: 313-556-5000 www.gm.com

Overview General Motors (GM) has been mass-producing cars since 1901 and now distinguishes itself as the largest U.S. exporter of cars and trucks, with operations in more than 190 countries, and also as the largest automobile manufacturer in the world. GM says it was the first to offer a closed body as standard equipment (1910), use an electric self-starter (1911), offer a comprehensive service policy (1926), develop the built-in trunk (1933), and offer an electric vehicle to consumers (1996). Along with brands commonly associated with GM—Cadillac, Chevrolet, GMC, and Pontiac—some of the less apple-pie brands under the GM umbrella include Saab and Saturn, not to mention stakes in Fiat and Suzuki. The company is also returning its new-product development focus

π at a glance

from trucks to cars. Indeed, GM has plans to sell small cars developed in a joint venture with Daewoo in North America. GM also makes locomotives and heavy-duty transmissions, and General Motors Acceptance Company (GMAC) is its financing arm. In early 2008, GM reported the largest annual loss in the history of the automotive industry, $38.7 billion. GM’s stake in GMAC also hurt the corporation, as the lender struggles with the U.S. mortgage crisis. GM has had better luck outside of the U.S. In China, the world’s fastest-growing automotive market, GM’s unit sales continue to grow, and market share has increased for the fifth consecutive year. To maintain its leadership position in China, GM plans to spend $3 billion in the country over the next three years.

Recent Milestones 2008 Reports largest annual loss in the history of automotive industry 2007 Enters tentative agreement to sell its mediumduty truck business to Navistar



Number of employees: 280,000 1-year change: - 16 percent

FOR YOUR REFERENCE

Getting Hired

Key Financial Stats

22


United Auto Workers union strikes for two days, but GM and the union hammer out a deal to create an independent health-care trust

2006 Announces it will cut 7 percent of its whitecollar positions

Announces it is the leading foreign car maker in China

At a glance

Overview

Key Financial Stats


Number of employees: 355,766 1-year change: -2.8 percent

2007 Acquires software development firm Vallent Corporation and data storage management provider Softek Storage Solutions

Establishes IBM Lender Business Process Services.

2006 Buys Internet Security Systems in a cash deal valued at $1.3 billion

Getting Hired


2008 Buys intelligence software developer Cognos for about $5 billion

The Workplace

π at a glance

Recent Milestones

On the Job

IBM is the world’s largest information technology company and second-largest software provider. The company, founded by NCR’s Thomas Watson in 1914, underwent something of a resurrection in 1993 when Louis Gerstner, an outsider with credentials in the financial services industry, took the company’s helm. Under Gerstner, IBM, which had been known for giving away the spoils of the PC revolution to Microsoft, returned to profitability and even growth. While the company built its reputation on monolithic mainframe computers (the inspiration for HAL in 2001, A Space Odyssey), IBM is betting its future

on software and services. Indeed, it is the world’s second-largest software maker, largely through the acquisition of enterprise software companies such as Lotus Development, CrossWorlds Software, Tivoli Systems, and Informix. Moreover, the company fortified its services business with the purchase of PwC Consulting, formerly the management and IT consulting arm of PricewaterhouseCoopers, in 2002. IBM sold its PC business in 2004; the segment yielded little profit for the company in the years leading up to the sale. IBM also branched into mortgage origination services in 2007 with the advent of IBM Lender Business Process Services. The subsidiary provides loan fulfillment operations to mortgage lenders.

The companies

1 New Orchard Road Armonk, NY 10504 Phone: 914-499-1900 www.ibm.com

The Industry

International Business Machines Corporation (IBM)

FOR YOUR REFERENCE


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Intel Corporation 2200 Mission College Boulevard Santa Clara, CA 95052 Phone: 408-765-8080 www.intel.com

Overview It’s Intel all over when it comes to computer chips. Intel, the “Tel” in WinTel, became the largest semiconductor company in the world by focusing on the PC industry. Founded when three mavericks, Bob Noyce, Andy Grove, and Gordon Moore, departed Fairchild Semiconductor in 1968, Intel is the

π at a glance

granddaddy of all technology startups. The legendary Andy Grove stepped down as CEO in 1998, and Craig Barrett took on the position until he stepped down in 2005 (Barrett is still chairman of the board). Current CEO Paul Otellini is just the fifth CEO in Intel’s 40year history, and the first non-engineer. Today, nearly three in four new computers have Intel inside, but it used to own even more of the market: The company’s long-running rival, AMD, has upped the competition, with its Athlon processor taking market share away from Intel’s Pentium models. In 2006, Intel introduced its Core 2 Duo line of microprocessors, and slashed prices for older models. To maintain its lead in the semiconductor industry, Intel spends vast sums on new manufacturing.

Recent Milestones

Key Financial Stats

2007 Announces it will build a 300mm wafer fabrication plant in northeast China that is scheduled to begin production in 2010


2006 Introduces Core 2 Duo line of processors

2006 revenue: $35,382 million 1-year change: - 1.1 percent

Number of employees: 94,100 1-year change: - 5.8 percent

FOR YOUR REFERENCE

Getting Hired

The Workplace


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2005 Paul Otellini succeeds Craig Barrett as CEO.

At a glance

1 Johnson & Johnson Plaza New Brunswick, NJ 08933 Phone: 732-524-0400 www.jnj.com




Named to Fortune’s list of “Most Admired Companies”

2006 Listed in the top ten companies on Fortune’s list of “Most Desirable Employers for MBAs”

Puts all its Tylenol cold and allergy medications that contain psuedophedrine behind the pharmacy counter to comply with the Combat Methamphetamine Epidemic Act, a component of the PATRIOT Act.

Acquires Pfizer Consumer Healthcare, which sells personal care and over-the-counter products around the world, for $16.6 billion in cash

2005 Acquires Closure Medical, a maker of wound closure products, and Animas, a company that sells insulin pumps. The company also acquires Rembrandt oral-care products from Global Gillette.

Getting Hired

Key Financial Stats

2007 Announces the acquisition of Conor Medsystems, a cardiovascular device company with a unique controlled drug-delivery technology

The Workplace

π at a glance

Recent Milestones

On the Job

Johnson & Johnson is a lot more than Band-Aids and baby shampoo: it’s one of the largest health-care product companies in the world, with more than 250 operating companies in some 50 countries. J&J has three multibillion dollar business units: consumer products, medical devices, and pharmaceuticals. In 2006, consumer products sales— which include many of the products the company is most recognized for, such as Tylenol, Neutrogena, and Band-Aid—were more than $9.7 billion. But this was small potatoes compared to other units. Risperdal, a treatment for schizophrenia, was the biggest single product in its pharmaceutical segment—a collection of products that, together, brought in more than $23 billion. Medical devices and diagnostics, which include divisions like Ethicon, which makes surgical sutures, and Lifescan, which makes blood glucosemonitoring systems for diabetics, accounted for $20

The companies

Overview

billion. In fact, it’s not everyday consumers who are Johnson & Johnson’s best customers; it’s three large drug distributors—McKesson, Cardinal Health, and AmerisourceBergen. The company was ninth among Fortune’s “Most Admired Companies” in 2007.

The Industry

Johnson & Johnson

FOR YOUR REFERENCE


25

At a glance The IndustrY The companies On the Job The Workplace Getting Hired


Nestlé USA, Inc. U.S. Headquarters 800 North Brand Boulevard Glendale, CA 91203 Phone: 818-549-6000 www.nestleusa.com Nestlé S.A. Headquarters Avenue Nestlé 55 CH-1800 Vevey, Vaud, Switzerland Phone: +41-21-924-21-11 www.nestle.com

Overview A subsidiary of the world’s largest food company, Nestlé USA puts hundreds of familiar brands in front of consumers every day. The company operated in a wide range of categories. Nestlé acquired a majority stake in Dreyer’s, a major ice cream maker, in 2003, and in 2007 bought Jenny Craig, the weight-loss company. These moves are typical of Nestlé’s strategy of growth through acquisitions. The company has also been positioning itself in the health-care nutrition market, where it is the number-two brand. In 2006, it




FOR YOUR REFERENCE


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announced the construction of a $359 million factory and distribution center in Anderson, Indiana. Nestlé USA is divided into five product groups: beverages, milk products, nutrition, and ice cream; prepared products and cooking aids; chocolate, confectionary, and biscuits; pet care; and pharmaceutical products. Beverages and milk products, its largest divisions, each contribute approximately 26 percent to the company’s top line. Prepared products account for about 18 percent; chocolates and pet care, 12 percent each; and pharmaceutical products, approximately 6 percent. The company has been global for some time—operating in 16 countries by 1905, just three decades after it was founded by Henri Nestlé. Today, Nestlé operates in more than 70 countries.

Recent Milestones 2007 Introduces Nestlé Juicy Juice Harvest Surprise, the first 100 percent fruit and vegetable juice made for kids 2006 Brad Alford succeeds Joe Weller as Nestlé USA chairman and CEO. Weller retired after 37 years with the company.

Acquires Novartis Medical Nutrition

Launches W. Health fund to invest in companies in the areas of health, well-being, and nutrition

2005 Removes added trans fats from all Lean Cuisine products and more than 87 percent of Stouffer’s frozen prepared meals

At a glance

1 Bowerman Drive Beaverton, OR 97005 Phone: 503-671-6453 www.nike.com

2007 Earns top marks on the “Climate Counts Company Scorecard,” which measures companies’ commitment to reversing climate change




2006 Launches Air Jordan XXI during the NBA AllStar Game. The shoes retail for $175. 2005 Decides not to sell its brand in Sears stores

Founder Phil Knight resigns as president and CEO, but remains chairman of the board. WETFEET INSIDER GUIDE

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FOR YOUR REFERENCE


Onemillion.org campaign raises more than $2 million in the first year to provide education and sports programming for refugee youth.

Getting Hired

The Workplace

Recent Milestones

On the Job

Whatever “it” is, Nike just does it—and does it well. Nike, named after the Greek goddess of victory, has seen the gods smile down on it, as it’s become the world’s largest shoemaker, athletic and otherwise. People in more than 200 countries worldwide buy Nike products. Nike had its origins, appropriately enough, at Hayward Field of the University of Oregon. It was there that runner Phil Knight met legendary track coach Bill Bowerman. The two went on to found the company now known as Nike. They haven’t looked back since: Nike has made Phil Knight a very wealthy runner; he still owns more than 80 percent of the firm. Nike’s share of the U.S. athletic shoe market hovers around 20 percent. The company has since expanded from sports into clothing, equipment, and consumer products like sports watches, digital music players, and sunglasses. With its Niketown stores, it is also a retailer. Beyond the Nike brand, the company owns Bauer hockey equipment; former athletic shoe rival Converse; Hurley International, a teenage apparel company; and staid shoe manufacturer Cole Haan.

The companies

Overview

Nike’s retail empire includes more than 80 Nike Factory Stores, 17 Niketown stores, and two Nike Women boutiques. In 2006, Nike veteran Mark Parker took over as CEO, succeeding Bill Perez. Nike’s victory has, to an extent, come through offshore manufacturing. Approximately 14 percent of its manufacturing is done within the U.S., with the remaining 86 percent scattered throughout 33 countries around the world. Human rights groups slammed Nike in the 1990s for “exploitative labor practices.” The firm responded in 1997 by starting up micro-enterprise programs to grow sustainable, locally owned businesses. It also set up a code of conduct for its offshore suppliers and a compliance monitoring program to ensure that its policies would be enforced. Nike’s domestic distribution primarily happens in Memphis, where it has two facilities with more than two million square feet of warehouse space. Its other distribution facility is in Oregon, adding an additional 540,000 square feet of distribution space to the company’s larder.

The Industry

Nike, Inc.



The Procter & Gamble Company 1 Procter & Gamble Plaza Cincinnati, OH 45202 Phone: 513-983-1100 www.pg.com

Overview Procter & Gamble is the undisputed king of consumer-packaged goods: the force behind Charmin, Folgers, Crest, Oil of Olay, Scope, Tampax, and Wella. P&G markets more than 300 products in 140 countries. Back in the U.S., P&G is the largest marketer of packaged goods. The once family-run soap and candle maker now includes 13 brands in its portfolio that sell more than $1 billion in revenue each year. P&G divides its brands across six lines of business: house and home, personal and beauty, baby and family care, health and wellness, snacks and beverage, and pet nutrition and care. Additionally, P&G is the soap behind soap operas; the company still produces Guiding Light and As the World Turns. The company isn’t content to rest on its soapy laurels though. It constantly tweaks its portfolio of brands, adding pet food giant Iams in 1999, Clairol in 2001, and German beauty products maker Wella




FOR YOUR REFERENCE


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in 2003, while divesting itself of Crisco and Jif in 2002. The company sold the Spinbrush to Church & Dwight for $75 million, and Right Guard, Soft & Dri, and Dry Idea to Henkel’s Dial Corporation. The purchase of Global Gillette in 2005 was the largest acquisition in the company’s history. P&G shed about 6,000 workers from both companies following the buyout. In addition to cultivating top brands, P&G is known as a management training ground for top marketing and operations professionals; it generates the best marketers in the world. Procter & Gamble’s meritocratic culture has not gone unnoticed. It regularly scores high in business publications’ workplace-quality and employee-happiness rankings.

Recent Milestones 2007 In conjunction with Yahoo and Zizo Group, P&G announces the launch of a new website for women, Capessa.com.

Announces it will divest its Western European tissue/towel business to SGA, a global consumer goods and paper company

2006 CEO A.G. Lafley is named “CEO of the Year” by Chief Executive magazine.

Named to Fortune’s list of “America’s Most Admired Companies”

2005 Purchases Global Gillette for $57 billion in stock. The largest purchase in company history makes P&G the largest consumer products company in the world.

At a glance The Industry

Retail Companies

1200 12th Avenue South, Suite 1200 Seattle, WA 98144 Phone: 206-266-1000 www.amazon.com

Overview




2007 Announces deal with TiVo to bring Web content to television through Amazon’s Unbox digital video download service

Launches Askville online community, where customers can ask each other for advice in a forum

Getting Hired

Key Financial Stats

2008 Announces plans to buy digital audiobook publisher Audible for about $300 million

The Workplace

π at a glance

Recent Milestones

On the Job

Like the river for which it is named, Amazon.com is a powerful force in the world of online retailing. Jeff Bezos’s creation, which started out as the world’s largest bookstore, has become the world’s largest virtual department store, selling not only books, CDs, and DVDs, but also consumer electronics, drugs, clothing, and nearly anything else you can think of. Like Dell with computers, the direct model gives Amazon.com amazing velocity. By reducing time in inventory, the company reduces inventory costs

and losses due to obsolescence. Additionally, the elimination of retail outlets reduces the company’s capital requirements. Amazon touts inventory turns of nearly 20 times per year—twice that of Costco, three times that of Wal-Mart, and quadruple that of Home Depot (source: Amazon Analyst Presentation). Additionally, Amazon.com has leveraged its infrastructure to host third-party stores, more recently in the category of gourmet foods and syndicated stores, such as Target. It has linked its virtual thirdparty stores to their brick-and-mortar counterparts.

The companies

Amazon.com, Inc.

2006 IBM files two patent infringement lawsuits against Amazon, alleging the company has been violating at least five of its patents.

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Best Buy Co., Inc. 7601 Penn Avenue South Richfield, MN 55423 Phone: 612-291-1000 www.bestbuy.com

Overview Best Buy came into being in 1981, when a tornado ravaged Richard Schulze’s electronics store, “Sound of Music,” in Roseville, Minnesota, and he liquidated the inventory. Best Buy, which displays a yellow sale-like tag on all its items, lures in consumers with the promise of a wide selection at low prices. Schulze further innovated by taking sales staff off commission and reducing their numbers and by developing a warehouse format. Taken together, this formula has


2006 revenue: $35,934 1-year change: 16.5 percent



FOR YOUR REFERENCE

Getting Hired

The Workplace


30


succeeded in propelling Best Buy to become the nation’s largest consumer electronics retailer, ahead of number-two Circuit City. Best Buy’s empire includes more than 1,170 stores in the U.S., Canada, and China. In addition to selling products, the stores offer installation, maintenance services, and technical support, including its Geek Squad business, which offers residential and commercial technical support. While most Geek Squads are located within Best Buy locations, about a dozen occupy stand-alone locations. In 2006, Best Buy acquired home appliance and remodeling retailer Pacific Kitchen and Bath Centers for about $410 million.

Recent Milestones 2007 Connecticut attorney general files a lawsuit against Best Buy, alleging the chain overcharged its customers.

Announces it will stop selling analog televisions Opens first store in China

2006 Acquires minority stake in Chinese-owned Jiangsu Five electronics retailer

At a glance

2 Folsom Street San Francisco, CA 94105 Phone: 650-952-4400 www.gap.com

2008 Old Navy President Dawn Robertson steps down, and Tom Wyatt replaces her on an interim basis. 2007 CEO Paul Pressler is succeeded by Glenn Murphy, who also takes over as chairman of the board for Robert Fisher, the son of Gap’s founder. Announces a package of measures intended to strengthen its commitment to eradicating child labor in the garment industry

Shuts down Forth & Towne, its newest concept stores, which catered to women over 35




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FOR YOUR REFERENCE

2006 Launches piperlime.com, an online footwear business

Getting Hired

Key Financial Stats


The Workplace

π at a glance

Recent Milestones

On the Job

Born in 1969 by Donald and Doris Fisher, heirs to the Levi’s fortune, Gap catered to the younger side of the generation gap with a retail outlet selling jeans to the youth of the nation. Initially loyal to the family business, Gap sold primarily Levi’s jeans in its stores. The Fisher Company still has a tight hold on the company, owning 20 percent of the firm and holding three seats on the board of directors. The retailer underwent a metamorphosis in 1983 when it hired Mickey Drexler as president of the Gap division. Drexler became CEO of the company in 1995 and reigned until 2002. Today, the company’s wardrobe consists of not only Gap, but also the up-market Banana Republic (purchased in 1983), Gap Kids (launched 1985), discounter Old Navy (launched 1994), and Gap Body (launched 1998). The company started selling online in 1997 through Gap.com. Gap’s empire of more than 3,100-plus stores stretches across the U.S., Canada, France, the United Kingdom, and Japan.

The companies

Overview

In its effort to make its clothing affordable, Gap relies heavily on overseas suppliers; about 98 percent of its products are manufactured outside the U.S., with about 22 percent coming from China. The company uses suppliers in more than 50 countries. In an effort to clear itself of using overseas sweatshops, the company adopted ethical standards for its suppliers in 2001, which included freedom for workers to return to their home countries. Since 2004, Gap has released annual social responsibility reports, documenting the social, environmental, and economic impacts of its international operations. In late 2007, Gap announced a package of measures that included a $200,000 grant to improve working conditions and a conference dedicated to finding solutions to child labor issues.

The Industry

Gap Inc.


The Home Depot, Inc. 2455 Paces Ferry Road, NW Atlanta, GA 30339 Phone: 770-433-8211 www.homedepot.com

Overview More than a few people call The Home Depot their home for home improvement items. The company, which formed in 1997, has grown to be the world’s largest home improvement chain and the numbertwo retailer in the U.S., behind Wal-Mart. Home Depot is more than a hardware store; its assortment also includes major appliances and rugs. Indeed, the “category killer” Home Depot, with its warehouse format, wide selection (up to 45,000 items), and low





FOR YOUR REFERENCE

Getting Hired

The Workplace


32


prices, has accreted 2,150 stores in the U.S., Canada, Mexico, and Puerto Rico, with 300 to 400 more planned by 2010. Home Depot sells not only to consumers, but has also developed a strong following among contractors and construction professionals. Home Depot reshuffled its top management in 2007 in response to angry shareholders. Its six-year chairman and CEO Robert Nardelli left, and it also sold its construction supply business, HD Supply for $8.5 billion, the same year. Nardelli was replaced by vice chairman and EVP Frank Blake. Between 300 and 400 new Home Depot stores are planned by 2010.

Recent Milestones 2007 CEO Robert Nardelli leaves Home Depot and it replaced by vice chairman and EVP Frank Blake.

Sells HD Supply for $8.5 billion

2006 Acquires EnerBank USA, a provider of home improvement loans to consumers through contractors

Opens the first Home Depot Fuel locations in Tennessee and Georgia.

At a glance

1014 Vine Street Cincinnati, OH 45202 Phone: 513-762-4000 www.kroger.com

π at a glance 2006 revenue: $66,111 million 1-year change: 1.2 percent



2007 Agrees to acquire 18 Scott’s Food & Pharmacy stores in Indiana from SUPERVALU

Acquires 20 Farmer Jack stores in the Detroit area

2006 Partners with Disney Consumer Products, giving Kroger more than 100 Disney-branded food items

Sells Cala Foods and Bell Markets in San Francisco area to DeLano Retail Partners

The Workplace

Key Financial Stats

Recent Milestones

On the Job

With 3,650 stores across the country under more than 20 brands, Kroger is the largest grocery chain in the country. It operates in the supermarket, convenience store, and club/warehouse, with brands that include not only Kroger, but Quik Stop, Kwik Shop, Fred Meyer, Ralphs, Food 4 Less, and PriceRite. The company owns about 42 food processing plants that supply its markets with some 10,000 private-label products, accounting for about a quarter of the

The companies

Overview

company’s grocery sales. Kroger has been growing through acquisition: buying Fred Meyer outright (a purchase that included the Ralphs, Smith’s, and QFC chains), and buying supermarkets from Albertson’s and Winn-Dixie in Texas. While the supermarket world is notoriously cutthroat, Kroger has been cutting prices while improving service and product selection to hang on to customers to compete with Wal-Mart Supercenters and other nontraditional grocery sellers, with some success. Wal-Mart operates Supercenters in more than half of Kroger’s markets.

The Industry

The Kroger Co.



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Macy’s, Inc. 7 West 7th Street Cincinnati, OH 45202 Phone: 513-579-7000 www.federated-fds.com

Overview The nation’s top department store chain adopted the name of its most famous brand and cash cow in 2007: Macy’s. Formerly Federated Department Stores, the empire includes 850 stores in 45 states, and rakes in annual sales of more than $26 billion. Four regional divisions operate under the Macy’s umbrella: Macy’s East, Macy’s Central, Macy’s Florida, and Macy’s West, in additional to the upscale Bloomingdale’s chain. Nearly 90 percent of the chain’s sales come from its Macy’s chain. Miracles, however, have been somewhat scarce on 34th Street these days. The company closed nine stores in six states in 2007 because of declining sales and insufficient growth opportunities, mostly in the Midwest. And though




FOR YOUR REFERENCE

Getting Hired

2006 revenue: $26,970 million 1-year change: 20 percent

34


the company did manage to generate positive income in 2003 after years of a doldrums economy, the company finds increased pressure from online retailers like Amazon.com, downward pressure from the likes of Wal-Mart, and pressure from specialty retailers besides. Since 2007, disgruntled Chicagoans, upset over Macy’s renaming of the Marshall Field’s chain of department stores, have boycotted the stores. Macy’s CEO Terry Lundgren has set about reinventing the department store by introducing four key elements: strengthening private-label brands; simplifying pricing; marketing on a national level; and making stores more accommodating by widening aisles and improving signage.

Recent Milestones 2008 Announces major restructuring, involving folding its Macy’s North, Macy’s Midwest, and Macy’s Northwest into its Macy’s East, Macy’s South, and Macy’s West units, designed to reinforce its local focus and improve customer service 2007 Closes nine stores in six states

Sells After-Hours Formalwear stores to The Men’s Wearhouse for about $100 million

Sells David’s Bridal chain of 270 stores to Leonard Green & Partners for about $750 million

At a glance

2401 Utah Avenue South Seattle, WA 98134 Phone: 206-447-1575 www.starbucks.com

Key Financial Stats

Recent Milestones 2008 Announces deal with AT&T to provide free Wi-Fi at its stores

2006 revenue: $9,411.5 million 1-year change: 20.9 percent


2007 Rolls out an expanded breakfast menu


Chairman Howard Schultz reinstalled as CEO.

The Workplace

π at a glance

On the Job

What began as a small chain of coffee shops has become ubiquitous. The world’s number one coffee retailer, Starbucks operates more than 15,000 shops in more than 35 countries. The company has also formed partnerships with food companies such as Nestlé and Pepsi to sell everything from coffee beans to ice cream and cold beverages in grocery stores. It also owns the Seattle’s Best Coffee and Torrefazione Italia coffee brands. Seattle’s Best has in-store cafés at Borders Books locations across the country. In recent

The companies

Overview

years, Starbucks has branched out into other markets, including dishware, books, and CDs. Benefits for employees reach far beyond the famed free pound of coffee a week; Starbucks has for years garnered a place on Fortune ‘s“Best Companies to Work For” list for its liberal workplace policies, including stock options programs, employee training programs, benefits for part-time employees, and partner benefits. Starbucks expanded its food menu in 2007, offering new hot food and breakfast options in an effort to get customers to spend more time at its cafes. The following year, the company announced it would end its deal with wireless Internet hotspot provider T-Mobile, and would instead pair with AT&T to provide free limited Wi-Fi access at more than 7,000 of its stores.

The Industry

Starbucks Corporation

2005 Jim Donald replaces Orin Smith as CEO. Getting Hired FOR YOUR REFERENCE


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Target Corporation 1000 Nicollet Mall Minneapolis, MN 55403 Phone: 612-304-6073 www.target.com

Overview Target, formerly Dayton Hudson, operates nearly 1,600 Target and SuperTarget stores in 47 states. The corporation used to include mid-range department stores Mervyn’s and high-end Marshall Field’s in its fold, but sold off those chains in 2004 to focus exclusively on its Target stores, which generated more





FOR YOUR REFERENCE

Getting Hired

The Workplace


36


than 80 percent of the corporation’s sales. Target has thrived while old-line retailers like K-Mart struggle for survival because it prices aggressively and offers stylish product lines designed by noted architects and designers. Such tactics have earned Target the distinction of number-two discounter in the U.S., behind Wal-Mart. Target’s online store, Target.com, is the third-most-visited retail website after eBay and Amazon. Target also owns apparel supplier The Associated Merchandising Corp.

Recent Milestones 2008 Announces Gregg Steinhafel will succeed Bob Ulrich as CEO

Isaac Mizrahi ends exclusive design deal with Target.

2005 Vice Chairman Gerald Storch resigns.

In the largest mass opening in its history, Target opens 60 new stores on October 9.

At a glance

702 SW Eighth Street Bentonville, AR 72716 Phone: 479-273-4000 www.walmartstores.com



Number of employees: 1,900,000 1-year change: 5.6 percent

2006 Ends its retail operations in Germany and South Korea 2005 Signs county singer Garth Brooks to a multiyear, exclusive contract under which Brooks’ music will only be sold in Wal-Mart and Wal-mart-owned stores

Vice Chairman Tom Coughlin retires after 25 years with the company.

Getting Hired

Key Financial Stats

2007 Agrees to pay $33.5 million in back wages and interest to settle a lawsuit that accused the company of violating overtime laws

The Workplace

π at a glance

Recent Milestones

On the Job

Sam Walton’s Wal-Mart Stores has become one of the most important companies in the world, redefining the way large retail corporations operate. Since 2000, the world’s No. 1 retailer has been led by Lee Scott, the company’s former chief operating officer, who replaced David Glass, CEO since Sam Walton left the position in 1988. Not only does it lead the Fortune 500 in terms of sales, it is also the country’s largest nongovernment employer, the largest retailer in the U.S., the largest retailer in Canada, and a key business partner of most consumer products companies. The company sells through 6,775 stores, including original format discount stores, Wal-Mart Supercenter combination discount and grocery stores, and warehouse format Sam’s Club stores. About 60 percent of its stores are in the U.S., but Wal-Mart has

The companies

Overview

operations in South America, Europe, and Asia. WalMart employs about 1.9 million people worldwide. With its size and power, Wal-Mart has become the target of controversy. Many detractors feel that the efficiency and cost savings that Wal-Mart has achieved have come at a heavy price to employees and vendors alike. Wal-Mart has been accused of squeezing its vendors, using part-time employees to avoid paying benefits, using primarily nonunion labor to lower labor costs, and knowingly using outside contractors that employ illegal immigrants to perform janitorial services. Wal-Mart is taking steps to better its image, including raising starting salaries by about 6 percent at some stores and expanding health-care coverage. More recently, environmental initiatives have been set for both its stores and fleet of trucks, including recycling programs and the development of a diesel-electric hybrid truck for deliveries.

The Industry

Wal-Mart Stores, Inc.

FOR YOUR REFERENCE


37

Transportation and Logistics Companies

Getting Hired

The Workplace

On the Job

The companies

The IndustrY

At a glance


Canadian National Railway Company


Gulf of Mexico. The company operates three regional headquarters: Western Canada (Edmonton), Eastern Canada (Toronto), and U.S. (Homewood, Illinois). Wal-Mart, the United Parcel Service, and the United States Postal Service are the company’s biggest customers. About a third of the company’s revenue comes from its U.S. operations. CEO E. Hunter Harrison has focused the company on maximizing performance in five areas: asset utilization, service, safety, cost control, and last but in no way least, its people. Insiders say positive things about the company’s benefits, and the company’s culture is known to be friendly and professional. One insider says, “No matter what department I’ve worked in, the people at CN have been some of the best people I’ve ever met.” The company’s management training program is also lauded by insiders; during the program, participants rotate through a variety of areas within the company, including the all-important operations arm (to advance in this company, it’s imperative to have a nuts and bolts-level understanding of how railroads and intermodal shipping work). The company has been slowly expanding through acquisitions. and has also announced plans to upgrade its fleet.


Recent Milestones

935 de La Gauchetière Street West Montreal, Quebec H3B 2M9, Canada Phone: 514-399-5430 U.S. Headquarters: 17641 South Ashland Avenue Homewood, IL 60430 Phone: 708-399-3500 www.cn.ca

Overview Canadian National Railway Company, or CN, operates the largest rail network in Canada and the only transcontinental network in North America, serving ports on the Atlantic, Pacific, and Gulf coasts while linking all three NAFTA nations. The company operates in eight Canadian provinces and 16 U.S. states, with a network that stretches from British Columbia to Nova Scotia and south to the

π at a glance

FOR YOUR REFERENCE

Key Financial Stats

Number of employees: 22,696 1-year change: 4.1 percent 38


2007 Agrees to buy Elgin, Joliet and Eastern Railway Co. for $300 million

At a glance

8100 Mitchell Road Eden Prairie, MN 55344 Phone: 952-937-8500 www.chrobinson.com

As one of North America’s largest non-assetbased transportation companies, C.H. Robinson provides logistics services using trains, planes, and automobiles (or trucks) that belong to other parties. C.H. Robinson is the only non-asset-based transport company to make the Fortune 500. CHRW’s

Key Financial Stats



2006 Purchases U.S.-based freight broker Payne, Lynch & Associates

Purchases India-based freight forwarder Triune

2005 Purchases Bussini Transport

Purchases Hirdes Group Worldwide

The Workplace


Recent Milestones

On the Job

π at a glance

The companies

Overview

statistics include 5 million shipments to more than 25,000 customers each year, and contracts with some 45,000 carriers. CHRW’s markets include food and beverage, printed materials, paper, manufacturing, and retail. In addition to transportation, CHRW’s produce sourcing business buys produce and provides category management for wholesalers, retailers, and food service operators. Finally, CHRW provides information management services, such as purchasing, route optimization, and fleet management, for motor carriers. Although CHRW does most of its business in the U.S., the company has offices elsewhere in the Americas, as well as in Europe and Asia—about 215 in all.

The Industry

C.H. Robinson Worldwide, Inc.



39


DHL Worldwide Network S.A.


and DHL—named for the initials of its founders Dilsey, Hillblom, and Lynn—grew exponentially. A subsidiary of Deutsche Post, Germany’s postal service, DHL provides transportation services to 120,000 destinations in more than 220 countries. Deutsche Post consolidated its Euro Express, DHL, and Danzas companies under the DHL brand. DHL now handles all of Deutsche Post’s express delivery and logistics operations, which are broken into four business units: DHL Express, DHL Freight, DHL Danzas Air & Ocean, and DHL Solutions. DHL Express is a parcel delivery company servicing more than 120,000 locations worldwide from about 4,700 offices. DHL Freight handles truckload and less-than-truckload shipments throughout Europe by road, rail, and combinations of the two. DHL Danzas provides air and sea freight solutions. DHL Solutions is involved in consulting, information technology, and customized solutions for its customers. DHL acquired Airborne in 2003—paradoxically to augment its U.S. ground operations and better compete with UPS and FedEx. In 2008, the company began introducing shipping kiosks at Walgreen’s locations.


Recent Milestones

De Kleetlaan 1 B-1831 Diegem, Belgium Phone: +32-2-713-4000 www.dhl.com U.S. Headquarters: 1200 South Pine Island Road, Suite 600 Plantation, FL 33324 Phone: 954-888-7000

Overview DHL got its start in 1969 by providing an innovative solution to a vexing problem. It flew documentation ahead of shipped freight, allowing customs papers to be processed ahead of cargo, thereby cutting weeks off of shipping times. The concept worked



FOR YOUR REFERENCE

Getting Hired

The Workplace


40


2007 Invests in Polar Air Cargo to gain additional freight capacity

At a glance

942 South Shady Grove Road Memphis, TN 38120 Phone: 901-818-7500 www.fedex.com

π at a glance

Recent Milestones 2007 Buys out joint venture partner DTW Group in China for $430 million 2006 Purchases UK-based express transportation company ANC Holdings for about $240 million FedEx Kinko’s establishes a major printing facility near Memphis hub, to make distribution of big commercial print jobs more efficient.

Purchases Watkins Motor Lines and the assets of Watkins’ Canadian unit, Watkins Canada Express, for about $790 million

Key Financial Stats



Number of employees: 143,000 1-year change: - 45 percent

The Workplace

On the Job

When Fred Smith, founder of FedEx, wrote a college paper proposing an overnight delivery service with a hub in Memphis, he received a “C.” Today, FedEx is the world’s leading express delivery service, delivering about 3.3 million packages a day to more than 220 countries and territories. It does this with a fleet of 670 aircraft and more than 43,000 motor vehicles. FedEx is composed of: FedEx Express, which handles express

The companies

Overview

transport; FedEx Ground, which provides ground delivery for small packages; FedEx Freight, divided into eastern and western regions, which operates as a less-than-truckload carrier; and FedEx Kinko’s locations, providing document services and serving as retail hubs for other FedEx businesses. Still, FedEx’s signature express delivery business accounts for about two-thirds of its sales.

The Industry

FedEx Corporation



41



Ryder System, Inc. 3600 NW 82nd Avenue Miami, FL 33166 Phone: 305-500-3726 www.ryder.com

Overview Founded by Jimmy Ryder with a single Ford truck purchased for $35 in 1933, Ryder was the first truck-leasing company in the United States. Today, with a fleet of more than 140,000 vehicles, Ryder System is a major force in the world of fleet and supply chain management. The company leases to more than 13,200 customers, primarily in the U.S., Canada, and the United Kingdom. Ryder divides itself into three primary lines of business: its Fleet

Key Financial Stats




FOR YOUR REFERENCE

Getting Hired

The Workplace

π at a glance

42


Management Solutions (FMS) group manages vehicles for commercial customers; its Supply Chain Solutions (SCS) business provides supply chain and logistics support from materials management to distribution; and the Dedicated Contract Carriage (DCC) group supplies trucks, drivers, and administration to customers. Ryder is doing all right by its customers. The company has received Supplier of the Year awards from a spectrum of Fortune 500 companies ranging from Alcan to Xerox. Ryder has also received numerous accolades for its information systems. The company has the reputation as a progressive employer: Latina Style magazine has ranked Ryder a top-50 employer of Latinas, and Hispanic magazine named it a top employer of Hispanics. It’s also spent time on Fortune’s list of most-admired employers, and InformationWeek’s top IT companies rankings. Continuing to grow both organically and through acquisition, Ryder gained control of Lily Transportation in early 2008.

Recent Milestones 2008 Completes deal to acquire Lily Transportation 2007 Acquires Canadian company Pollack NationaLease

At a glance

3101 South Packerland Drive Green Bay, WI 54306 Phone: 920-592-2000 www.schneider.com

Schneider National came into being in 1935 when A. J. “Al” Schneider sold the family car and bought a truck with the proceeds. Today Schneider National, with about 14,400 trucks and 48,000 trailers, is one of the largest truckload carriers in North America. The company operates in the U.S., Canada, and Mexico and boasts that it services two-thirds of the Fortune

Key Financial Stats



Recent Milestones 2006 Sells Schneider Payment Services, its freight bill payment business 2005 Acquires American Port Services

The Workplace


On the Job

π at a glance

The companies

Overview

500. The company has more than 16,000 employees and 14,000 contractors under its aegis, and more than $3 billion in annual revenue. Schneider is a privately held company, and Al’s son Donny remains the chairman of the board. Schneider, however, doesn’t let nepotism spoil its business. In 2002, Christopher Lofgren, who previously served as CIO and COO, became the first outsider to run the company. The firm has noted information technology capabilities and regularly garners spots on the InformationWeek 500 and InfoWorld 100. The company was the first in the nation to create a satellite tracking system for its fleet in 1988, which set a new standard for the industry. The company tried to parlay its IT competency into an IPO of its Schneider Logistics division in 2000, but unfavorable market conditions forced the company to put the plan on hold. In 2006, it sold Schneider Payment Services as part of a plan to divest noncore businesses.

The Industry

Schneider National

Getting Hired FOR YOUR REFERENCE WETFEET INSIDER GUIDE 43


Union Pacific Corporation 1400 Douglas Street Omaha, NE 68179 Phone: 402-271-5777 www.up.com

Overview Union Pacific’s illustrious past dates to 1863, when Congress chartered it (along with Central Pacific Railroad) to build a railroad to reach the Pacific. The company made history in 1869 when it met the Central Pacific Railroad at Promontory, Utah, and linked the country by rail. Today, Union Pacific stands as the largest railroad in the U.S., spanning 23 states and covering nearly two-thirds of the country with more than 32,300 miles of tracks. Union Pacific’s tracks run from the West Coast to


Chicago, Memphis, and New Orleans. Union Pacific’s rails also lead to all major Mexican ports of entry, positioning it well for a post-NAFTA world. Within the world of freight railroads, UP is number one as well, ahead of challenger Burlington Northern Santa Fe. The company’s inventory consists of more than 7,000 locomotives and nearly 91,000 freight cars. UP’s largest customers are the steamship company APL and General Motors, followed by a number of utilities and chemical manufacturers. UP holds the distinction of being the largest transporter of chemicals in the country, hauling most of them from the Gulf Coast. It’s also a major coal transporter, moving 240 million tons a year from the Powder River Basin of Wyoming and the coalfields of Illinois, Utah, and Colorado. While Union Pacific is primarily a railroad, it operates a logistics company, Union Pacific Distribution Services, focusing on rail and intermodal transportation services, and three technology companies: Nexterna (wireless software), Timera (workforce management), and Transentric (supply chain management).


Recent Milestones


2006 Reorganizes operating structure, going from four regions to three


FOR YOUR REFERENCE

Getting Hired


44


2004 Sells Timera workforce management software subsidiary

At a glance

55 Glenlake Parkway, NE Atlanta, GA 30328 Phone: 404-828-6000 www.ups.com

Moving some 15.6 million packages a day through more than 200 countries, UPS is the largest package delivery company in the world. Its fleet consists of 101,000 brown motor vehicles and more than 600 aircraft. In addition to package delivery, UPS offers

Key Financial Stats



Recent Milestones 2008 Vice chairman and CFO Scott Davis takes over as CEO. 2006 Cancels order for A380 Airbus freighter planes because of production delays 2005 Acquires Overnite LTL business

The Workplace


On the Job

π at a glance

The companies

Overview

supply chain management solutions to its customers. Though the company is public, nearly 90 percent of the company stock is owned by employees and family members. As competition has become more keen in the domestic ground carrier market, thanks especially to arch rival FedEx, UPS has become more competitive by offering faster service on some of its routes. In addition, it has increased its retail presence through the acquisition of the Mail Boxes Etc. franchise, which has 5,800 locations that have been rebranded as The UPS Store. The company is looking toward nontraditional markets for growth, especially in the area of supply chain management solutions.

The Industry

United Parcel Service, Inc.



45


U.S. Postal Service 475 L’Enfant Plaza SW Washington, DC 20260 Phone: 202-268-2500 www.usps.com

Overview Few organizations have a history as rich as the U.S. Post Office. Created in 1775 with Benjamin Franklin as the first postmaster general, the USPS is the secondoldest government agency in the U.S. Today, the Postal Service delivers more than 213 billion pieces of mail a year to some 146 mailing addresses in the U.S. and its territories. While it has a monopoly on non-urgent


letters, it must compete with private carriers in the areas of package delivery and urgent deliveries. The Postal Service is a government agency that derives its funding primarily through postage. Although it is independent, the President appoints 9 of the 11 members on the Postal Service’s board, which in turn selects the postmaster general. Though the ubiquity of email has caused a decrease in mail traffic, the Postal Service has attempted to stem losses by developing online offerings.

Recent Milestones 2007 Raises price of first-class stamp from 39 cents to 41 cents

Announces plans for $1.1 billion in cost reductions


2006 Raises price of first-class stamp from 37 cents to 39 cents



FOR YOUR REFERENCE

Getting Hired

The Workplace


46


Introduces “Forever Stamp,” a stamp that will be able to be used even when stamp prices are raised again

At a glance

The Industry

The companies

On the Job

The Workplace

Getting Hired

FOR YOUR REFERENCE

47


On the Job

4

The Big Picture.............................. 50 Key Jobs......................................... 50 Real People Profiles........................ 57



The Big Picture Supply chain management offers a broad range

of opportunities across several industries. Nonetheless, when recruiters seek to fill an SCM positions, they are usually looking for relatively specialized skill sets. They often find these at a limited set of “go to” schools with formal supply chain management programs, including Arizona State University, the University of Maryland, and the University of Tennessee. In addition to recruiting candidates with degrees in supply chain management (both undergraduate and MBA), companies will often consider people with engineering degrees. Titles for MBAs and graduate degree holders often don’t differ from those of their undergraduate brethren. For instance, an MBA and undergraduate both might land a job with the title of materials specialist upon graduation. Despite the lack of differentiation conferred by the title, the jobs would differ considerably in pay scale and responsibility. Additionally, advanced-degree holders are more likely to find rotational or management trainee positions than undergraduates. Advanced-degree candidates will find exposure to many disciplines through four 6-month rotations before settling into a procurement, logistics, or supply chain management role, whereas an undergraduate might settle directly into a procurement or inventory management role.

Key Jobs

FOR YOUR REFERENCE

As if searching for a job weren’t difficult enough,

job descriptions in supply chain management suffer from a blurring of responsibilities over titles, a lack of standard nomenclature for positions, and, often, a lack of distinction between ranks. In the first case, the job description for a given role may encompass a number of disciplines. For instance, in a manufacturing 50


firm, a procurement or purchasing role might include inventory management responsibilities; in a distribution or logistics firm, those same duties might fall within a transportation role. A standard nomenclature for supply chain management roles does not exist. Unlike the field of consulting, where the differences between analyst and associate/consultant are nearly universally understood, a single role in supply chain management might be called analyst, specialist, or coordinator, depending on the caprices of the company that set out the requisition for that position. The field doesn’t readily distinguish between levels of seniority and expertise in job titles. For instance, within the same company, a PhD with 20 years of experience and profit/loss responsibility and a greenhorn with a freshly minted bachelor’s degree both may be called a specialist. To simplify this, we’ve broken down roles into key areas: materials and procurement, logistics, supply chain management, transportation, inventory management, operations, sales and customer service, and consulting.

Materials and Procurement Roles Materials Scheduler Education: BA/BS Salary range: $38,000+ Materials schedulers coordinate raw materials and inventory with production schedules. They serve as conduits so that the right amount of material arrives at a production facility at the right time. Likewise, they coordinate release of finished products with movement to quality assurance.

Materials Analyst/Manager Education: BA/BS, often advanced degree in business, supply management, or industrial engineering Salary range: $50,000–65,000 (analyst); $65,000–97,000 (manager) The purview of this function is materials and inventory components. Duties include managing inventory levels, coordinating with purchasing and

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Procurement Analyst/Purchasing Manager The typical career path of the materials analyst leads to materials manager roles and lateral movement to logistics management roles.

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> tIp While production managers need analytical and forecasting skills to determine material and labor requirements, forecast output, and maintain quality, they also need extremely keen people skills. Production managers interact with line personnel, often people with vastly different age and education levels than most professionals.

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lOgIsTIcs rOlEs Logistics Analyst/Manager Education: BA/BS, advanced degree Salary range: $37,500–64,000 (analyst); $70,000–100,000 (manager) Analysts and managers work on a wide range of logistics functions, including warehouse and WETFEET INSIDER GUIDE

FOr yOur rEFErENcE

Education: BA/BS, advanced degree Salary range: $40,000–55,000 (analyst); $50,000–76,000 (manager) Production managers serve as mini-plant managers in a manufacturing company. Their responsibilities include coordinating production schedules, forecasting labor requirements, maintaining quality, determining material requirements, and managing finished goods inventory/output. The position often leads to roles as plant manager and often to executive operational roles, such as COO. As with most manufacturing positions, many companies seek people with Six Sigma and lean manufacturing experience. The career path in production management might be two to four years as an analyst, another two to four years as a production manager, then on to director-level roles.

ON ThE jOb

Production Analyst/Manager

ThE cOmpaNIEs

manufacturing to ensure efficient costing of inventory, materials budgeting and forecasting, and, often, warehousing, receiving, and scheduling responsibilities. Employers often seek materials analysts with justin-time or lean manufacturing knowledge, as well as competency in Six Sigma practices. Often, the materials analyst works closely with engineering and product development teams to determine what affects changes in materials will have on the production of a product. At more senior levels, such as manager or director, you take on a strategic role to improve processes, quality, and productivity. The position requires excellent analytical skills, the ability to work with people across functions, and attention to detail.

Education: BA/BS, MBA Salary range: $40,000+ (analyst); $65,000+ (manager) As the title implies, purchasing managers oversee an organization’s purchasing operations. Junior roles, such as procurement analyst, typically focus on a single aspect of procurement and purchasing. For instance, a procurement analyst might work primarily on analyzing historical purchasing costs for materials, forecasting future costs, or finding prospective vendors. In large organizations, purchasing is a large and strategic endeavor. Purchasing involves identifying suppliers from which to source materials, selecting those suppliers, negotiating supply contracts, developing the business frameworks for those contracts, and managing suppliers. Purchasing managers work with materials managers and manufacturing departments to identify the material needs for the organization. Moreover, purchasing managers develop metrics for managing procurement costs, delivery times, service levels, and quality.

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Supply Chain Analyst

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The ladder to a manager-level position might take 5 to 7 years to climb, a director-level or higher position 10 to 15 years. Supply chain professionals say that, as in other industries, advancement tends to be more prescribed and slower in larger companies than in smaller ones.

distribution operations, forecasting, planning, logistics information systems, customer service, and purchasing. Analyst roles might deal with an area within the logistics function, while senior roles such as manager or director roles involve overseeing a team of analysts. Managers negotiate and contract with suppliers and carriers, develop supply chain metrics and strategy, and oversee day-to-day management of logistics functions. Analysts devote much of their days to problem solving, forecasting, and ensuring that operations are running within determined metrics. While all levels in the area require strong analytical skills and attention to detail, senior roles require outstanding people skills and strong negotiation skills.

Education: BA/BS, MBA Salary range: $46,000–65,000 The analyst typically supports the supply chain manager through any number of activities, including defining and articulating business processes, performing analysis on any aspect of the supply chain, evaluating vendors and potential supply chain partners, researching industry best practices, participating in meetings, and communicating supply chain management goals to cross-functional teams.

Supply Chain Systems Manager

supply chaIN maNagEmENT rOlEs

Education: BA/BS Salary range: $55,000–132,000 Supply chain systems managers support logistics and supply chain operations through oversight and management of software systems such as i2, Baan, SAP, and Oracle. Functions include managing vendors and consultants, developing system requirements, reporting requirements, overseeing analysts and developers, and communicating needs of business and technical functions. The systems manager has knowledge of business processes, supply chain management practices, system design, and software and hardware design and the ability to communicate between technical and business groups.

Process Engineer

Supply Chain Manager

Education: Bachelor of civil, industrial, or mechanical engineering Salary range: $45,000+ Process engineers typically analyze processes within any number of industries—manufacturing, distribution and transportation, or retail—and develop improved processes that make better, safer use of labor, materials, energy, and other resources. For instance, a process engineer in a distribution center might work to improve outbound and inbound traffic processes or invoice handling. In a manufacturing environment he might develop a better method for handling raw materials. Additionally, he might develop the metrics used to manage the processes once improved.

Education: BA with 5–10 years of experience, MBA Salary range: $60,000–120,000 The supply chain manager role is the Holy Grail of supply chain management and logistics, both sought after and elusive. The scarcity of pure supply chain manager roles comes from the fact that the role is interdisciplinary, spanning logistics and distribution, purchasing, manufacturing, inventory management, and even marketing and product development. The supply chain manager reviews existing procedures and examines opportunities to streamline production, purchasing, warehousing, distribution, and financial forecasting to meet a company’s needs. The job typically involves developing strategies to cut costs, improve quality, and improve customer satisfaction.

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Education: BA/BS, MBA Salary range: $125,000+ At the top of the supply chain management food chain, the vice president is part of the senior management team and usually reports to the chief operating officer of a company. The vice president’s purview often includes all supply chain functions, including logistics, facilities, and purchasing. The vice president translates executive strategies into supply chain functions. Directors of the various functional areas in supply chain often report to the vice president.

Education: BA/BS Salary range: $45,000—85,000 The fleet manager supervises and manages a dedicated contract carrier or private fleet. His duties include hiring and managing drivers, developing routes, ensuring that the fleet meets Department of Transportation regulations, and optimizing fleet utilization. The fleet manager also manages fleet inventory, ensures preventive maintenance takes place, and plans fleet growth requirements. Although it requires forecasting and analysis skills, the fleet manager is primarily a hands-on management role. Interpersonal skills are essential to success in the position. Like many other jobs in transportation, this is a demanding job in that it often comes with long, unpredictable hours.

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Vice President, Supply Chain Management

Fleet Manager

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Development of SCM systems typically involves large-scale IT projects, so familiarity with and hands-on implementation of systems such as SAP is a plus.

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from a distribution center. Transportation managers will often manage carriers, transportation costs within specified metrics, third-party transportation providers, and freight bill presentation; negotiate contracts; and ensure that freight moves smoothly across international borders. Because the transportation manager must ensure that transportation activities meet legal requirements, she must be familiar with Department of Transportation regulations. Like other positions in transportation, this is a demanding position with long, unpredictable hours, at times even being on call 24/7: You have to make sure that the train or the truck or the plane or the bus leaves on time. Work/life balance can be an issue in this job.

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Supply chain managers need to know distribution center operations, transportation, supplier operations, operations management, cost-benefit analysis, process improvement, and logistics strategy; moreover, they need excellent management and communications skills. They must be able to not only develop solutions, but also drive their implementation across functional areas and through to vendor organizations and supply chain partners. Companies seeking supply chain managers additionally look for Six Sigma experience and, in manufacturing settings, lean manufacturing experience.

Inventory Specialist Transportation Manager

Education: BA/BA Salary range: $35,000–55,000 (analyst); $60,000– 90,000 (manager) The inventory specialist works to optimize inventory levels based on the costs of inventory and warehousing, service levels, and replenishment time WETFEET INSIDER GUIDE

FOr yOur rEFErENcE

Education: BA/BS Salary range: $45,000—80,000 Transportation managers typically work under logistics managers to oversee the inbound and outbound traffic of materials and finished products

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and costs. An inventory coordinator might work at the retail, distribution center, or plant levels. Duties include working with supply chain managers to determine optimal inventory levels, analyzing historical sales data and seasonal demand to determine inventory needs, analyzing processes to determine replenishment cycles, and resolving issues related to inventory levels and replenishment. The inventory specialist role requires keen analytical skills and the ability to work at a level of high detail.

INSIDER SCOOP “I spend most of my days either running reports for my manager or people in other departments or representing my department in crossfunctional meetings.”

Vendor-Managed Inventory/Replenishment Specialist Education: BA/BS Salary range: $40,000+ The vendor-managed inventory (VMI) specialist works for a manufacturer to manage the inventory of a customer. For instance, Procter & Gamble might have a contract to manage the inventory of its products at a grocery chain. The VMI specialist would then work to optimize inventory levels for the client. Using

sales activity, promotions data, and historical data, the specialist plans inventory replenishment, working with clients to determine optimal inventory levels and getting the data needed to carry out the task. The VMI specialist works with teams from both the vendor and client companies to ensure that manufacturing and demand are synchronized. The VMI specialist must not only possess knowledge of supply chain processes and analytical prowess, but also the ability to instill confidence in a customer whose business depends on proper inventory management.

OpEraTIONs rOlEs Warehouse Operations Manager Education: BA/BS Salary range: $37,000–85,000 The warehouse operations manager typically works in the retail or distribution and transportation industries. He manages the placement of inventory within the warehouse, ensures the accuracy of inventory levels, oversees warehouse personnel, and makes certain that the warehouse meets regulatory safety requirements. The warehouse manager’s skill set includes impeccable communication skills across educational and demographic strata, leadership skills, and some analytical skills. Warehouse managers are typically hands-on managers with a practical approach to management.

Facilities Manager

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Education: BA/BS Salary range: $58,000–95,000 A facilities manager’s responsibilities typically include managing the physical building and machinery required to keep an operation such as a distribution center running smoothly. Therefore, facilities managers manage maintenance of equipment, plan for contingencies should equipment fail, and plan requirements for new property and equipment. Typical distribution center equipment includes conveyers, picking lights, sorters, and scanners. Facilities managers often work with outside vendors to develop 54


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training on equipment and negotiate maintenance contracts with vendors.

The sales position requires familiarity with logistics and supply chain solutions for a particular industry and superb communication and relationship-building skills.

Account Specialist/Customer Service

Customer Service Manager

cONsulTINg rOlEs Supply Chain Analyst


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FOr yOur rEFErENcE

Education: BA/BS Salary range: $50,000+ Analysts typically work under project managers and consultants in consulting firms. They often stay in that role for 2 to 4 years, at which time they move on to become project managers or go back to school to get their MBAs. In smaller consulting firms, analysts may stay in the role indefinitely or combine

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Education: BA/BS Salary range: $37,000–60,000 The customer service manager leads teams of customer service representatives in resolving issues and maintaining high customer satisfaction. The role involves ensuring that contractual support representatives meet contractual service levels, defining those service levels, developing support center processes, and working with other functional areas to control service costs while maintaining customer satisfaction. Although customer service isn’t the most glamorous of functions within supply chain management, it does give greenhorns ample exposure to different aspects of the business.

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An account specialist is often located on-site with the client; paramount abilities include selfmanagement, thinking on your feet, and the usual battery of client management skills.

Education: BA/BS Salary range: $60,000+ Supply chain account managers typically sell supply chain, outsourcing, or third-party logistics solutions to customers in specific industries, such as manufacturing or consumer packaged goods. The work of the account manager typically includes two functions: sales and account management. The first part of the job entails developing, along with specialists, a solution for a proposed customer. The second part entails ensuring that the customer is satisfied with the solution provided and finding additional solutions for follow-up work. In the second part of the function the account manager typically works with support and operations personnel to determine potential followon solutions. The account manager also follows up on service issues for a client, while not necessarily resolving those problems herself. The account manager must be able to instill the client with enough confidence to hand over critical supply chain functions to the vendor firm.

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Account Manager/Supply Chain Sales

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Education: BA/BS Salary range: $33,000+ The account specialist/customer service role is typically an entry-level position for newly minted supply chain management majors. A specialist typically works at a logistics or transportation firm and is assigned a customer for whom he serves as primary contact. Typical duties include resolving customer service issues for a client, building relationships with clients and carriers, and coordinating shipments for the client.

aT a glaNcE ThE INDusTry ThE cOmpaNIEs ON ThE jOb ThE WOrkplacE gETTINg hIrED FOr yOur rEFErENcE

Careers in Supply Chain Management the analyst role with that of project manager. Supply chain analysts typically define business processes and then apply software systems such as SAP, i2, or Baan to improve and automate those systems. Put simply, analysts customize software packages to meet the needs of large enterprises. Typically, analysts interview people in manufacturing, inventory, logistics, warehousing, and procurement functions to determine a company’s business processes and supply chain requirements. They then match these requirements against the features of a software package and work with application developers to customize that package to the client’s needs. Sometimes analysts will do some minor software development work themselves.

INSIDER SCOOP “I think technology manufacturers value us [the consulting firm] because, as outsiders, we can make changes in their organization in a way that they can’t—because we’re smart and because we know the industry and the software inside and out.”

Supply Chain Consultant Education: BA/BS with 5–10 years of experience and/or MBA Salary range: $77,000–160,000 The supply chain consultant is a rare and desirable role: a senior employee, usually post-MBA, who joins with an analyst and project manager to make up the team on a consulting engagement. The SCM consultant reviews existing procedures and examines opportunities for streamlining production, purchasing, warehousing, and distribution to meet a company’s needs, then develops strategies to cut costs, improve quality, and improve customer satisfaction. In addition to a familiarity with distribution center operations, transportation, supplier operations, operations management, cost-benefit analysis, process improvement, and logistics strategy, SCM consultants need excellent management and communication skills. 56


Project Manager Education: BA/BS, MBA Salary range: $85,000+ Project managers typically lead consulting teams in the day-to-day management of client engagements. They often directly supervise analysts and work with consultants to ensure that a project is implemented according to agreed-on time and cost metrics. Their primary responsibilities are communicating with clients, marshalling firm and client resources, and working to ensure the project goes according to plan.

> tIp In most large consulting firms, people are given project manager positions based on exceptional performance as an analyst or by working as an analyst for two years and obtaining an MBA. In smaller firms, the path to project manager is more ﬂuid, and firms often take candidates with industry experience in lieu of consulting experience.

Director of Client Management/Engagement Manager Education: BA/BS, MBA Salary range: $125,000+ The director of client management/engagement manager usually works for an outsourcer such as a third-party logistics or consulting firm. In a logistics firm, the director of client management typically manages account managers and sales staff, sets sales targets for managers, determines the strategy and value proposition of the outsourcer, and works with account managers to tailor strategies to specific clients. In a consulting firm, the engagement manager typically oversees a consulting engagement at the executive level. The role is often something of a rainmaker, wherein the director uses her industry contacts to gain access to decision-makers within target companies.

At a glance

Program Manager, Global Materials

8:30 A.M. Check e-mail; can’t resist replying to a rant from a B-school buddy. Prepare for my 9:00 a.m. conference call. Check in with my colleague in manufacturing to prep for the call.

10:30 A.M. Spend the rest of the morning doing analysis—we have a very metrics-based style of management.

5:30 P.M. Finish the proposal, send it out to my manufacturing colleague, and cc my boss. I spend the rest of the day responding to e-mails that piled up 6:00 P.M. Head for home and pop into my apartment. WETFEET INSIDER GUIDE

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FOR YOUR REFERENCE

10:00 A.M. Review what we heard on the call with my colleague and share with him my ideas for a proposal.

2:30 P.M. Work on the proposal based on this morning’s call.

Getting Hired

9:00 A.M. Call a customer and her team to get information on an RFQ they sent for materials and transportation on a product we already manufacture. They like us and are telling us what they’d like to see.

1:30 P.M. Join another conference call—this time we’re pitching a solution to an automobile manufacturer. With automobile manufacturing becoming ever more complex, it looks like a great market for us to grow into.

The Workplace

7:30 A.m. Pull into the office in Silicon Valley.

1:00 P.M. Respond to a voice mail I received while I was out about a shipment of computer parts being held in Mexico due to improper documentation. It’s a relatively minor issue, but part of the job is making sure that the lines keep running and production doesn’t stop. Make some calls and get a contact in Mexico to work on resolving the issue.

On the Job

A Day in the Life of a Program Manager

12:30 P.M. Lunch? It’s usually Indian food or the “Roach Coach,” two favorites here in glamorous Silicon Valley. Have another meeting this afternoon.

The companies

Education: MBA, Supply Chain Management; MS, Industrial Engineering Experience: 4 years A specific type of position in materials management, the program manager in global materials develops solutions to get raw materials and unfinished inventory to manufacture via air, sea, or ground transportation. The position serves a contractmanufacturing firm, so it requires client management and account management skills. Adaptability is also key: a new tariff or export tax might change the cost of manufacturing so much that you shift production to a facility in a different country. This necessitates, of course, shifting the entire supply chain.

“The role is defined by change. There are always things that come up that chip away at what you thought was an optimal solution.”

The Industry

Real People Profiles


Careers in Supply Chain Management Supply Chain Management Consultant Education: MBA; BS, mechanical engineering Experience: 4 years post-MBA This SCM consultant’s job probably has more in common with being a consultant than with being an SCM professional. Typically, his firm is engaged chiefly to redesign business processes and integrate software applications. When implementing a system like SAP, a project’s progress can be marked in years. Luckily, he typically moves on after the process design and strategy work is complete. Part of the currency of the consultant is his knowledge of clients within the industry.

A Day in the Life of a Supply Chain Management Consultant 9:00 a.m. Give myself a little break and arrive at the office late. The office this morning being Kuala Lumpur, a 16-hour time difference from the West Coast. Malaysia is a hub of technology manufacturing. Meet with the operations team of a large PC manufacturer. In this project, we’re working on integrating circuit board makers into their supply chain as part of a larger technology integration project. Along with our engagement manager and project manager (based in Singapore), I lead our introductory meeting. 12:00 p.m. Use our lunch break to check on e-mail and follow up on some work for a previous project. 1:00 p.m. The engagement manager and I meet with the VP of operations, a former consultant herself. We outline who we’ll need to talk to, the heads of this and that department, the workshops we’ll have to schedule, and the like.

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2:00 p.m. Meet with the director of materials to determine the tariff issues involved with using suppliers from various Asian countries. Part of the trick of consulting is instilling trust with clients quickly. That is, you have to show them that you know what you’re talking about and convey confidence from the get-go. 3:00 p.m. Tour the production floor. 4:00 p.m. Drop in on the VP of operations again (planned of course) to give some initial impressions and thoughts and to see how many people’s calendars we’re on. 4:30 p.m. Spend some hours “heads down.” Read a little e-mail, respond to urgent matters, but mostly note what went on during the day and process my thoughts—it’s important to have ideas quickly. 7:30 p.m. Dinner and drinks with the client. 9:00 p.m. Work on a PowerPoint presentation for the morning and then crash. The work is great for a few years, but you have to embrace life on the road. Some consultants talk of “going virtual”—that is, they travel so much that they let their leases lapse and live on the road.

At a glance

2:00 p.m. Work on the service level terms on a contract for a supplier. 4:00 p.m. Work on a presentation I’m preparing for the executive team regarding my strategy for reducing inventory costs over our product lines for the upcoming year. 5:30 p.m. Do a final e-mail check before heading home. WETFEET INSIDER GUIDE

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FOR YOUR REFERENCE

9:00 a.m. It’s Friday, so I meet with my team—a buyer, inventory analyst, planner, and operations manager. Our biggest concern right now is quality—our company makes machines that are embedded in the human body—so there’s little room for error. We debate a potential supplier that promises to have better quality. I assign our planner to do some research on the practical aspects of bringing in this supplier—cost, import issues, transportation issues, ability to meet

1:00 p.m. Along with a quality engineer and materials engineer, I have a conference call with a potential supplier.

Getting Hired

8:00 a.m. Get to the desk, check e-mail, and log into the ERP system. Though we assemble our precision devices in the United States, a lot of our suppliers are abroad, so there’s often a hot issue waiting for me when I get in.

12:00 p.m. Grab an empty conference room and eat a lunch my wife packed for me. Some guys from product development join me. Go back to my desk and check my fantasy football standing on the Web.

The Workplace

A Day in the Life of a Materials Management Director

11:30 a.m. Look over the weekly reports from my time and look for deviance from the metrics we set forth. Metrics-based management and Six Sigma are as strong now as ever.

On the Job

“By far the most exciting part of my job is selecting vendors, negotiating contracts, and hooking these guys into our system.”

10:00 a.m. Meet with the COO (this is a small company—one of the good things about a small company is that you are very close to executive decisions) to discuss executing his plan to free a big chunk of cash flow. In this case, the issue is how we can reduce inventory costs. There’s also a plan to introduce a new implant device—I help in the product introduction decision process by providing some scenarios for the cost of inventory that we would need given different introduction times.

The companies

Education: MBA; BS, industrial engineering Experience: 5 years pre-MBA in manufacturing The scope and level of responsibilities of a materials manager or material management director vary greatly according to the size of a company. The director of materials management at this mid-size medical device manufacturer, for instance, has responsibility over not only materials management, but also oversight over purchasing, inventory management, and distribution.

our production schedule. We’re working together with quality engineering on this one.

The Industry

Director, Materials Management


Careers in Supply Chain Management Manager, Non-Retail Distribution Education: Bachelor of business administration Experience: 10 years A type of warehouse operations manager, the nonretail distribution manager’s job entails managing all aspects of moving goods from suppliers to distribution centers for one of the country’s largest retailers.

A Day in the Life of a Non-Retail Distribution Manager 8:30 a.m. Arrive at the office and take care of the usual e-mail before continuing on with the rest of the day. 9:00 a.m. It’s the end of the year, so I meet with the vice president of distribution to go over the tweaks I made for the budget. 10:00 a.m. Call one of our vendors for private-label housewares to review their performance. They’re drifting dangerously close to the upper limits of their service level agreement. There’s no room for being a nice guy here—if they don’t supply us according to plan, then I get hell from the district managers at the retail level. Being a little hard-nosed, coupled with our position as one of the top retailers in the country, gets things moving fairly quickly. 11:00 a.m. Have a meeting with one of our specialists on what messages to send out to our internal retail customers for the upcoming week. 11:45 a.m. Early lunch at the corporate cafeteria.

“Setting up the processes is one thing, but much of the job is making sure that your freight bills are not out of whack and manufacturers are adhering to their service level agreements. There’s a lot of talking on the phone. Northeast. I drive them down, but not as much as I would have liked. 2:00 p.m. Review a scorecard on vendor performance built by my analyst. Except for the vendor I called in the morning, it looks good. Call my analyst to explain some discrepancies in the numbers. One of the good things about negotiating as part of your daily job is that you’re far more likely to get a private office. 2:30 p.m. Work on re-tweaking the numbers from this morning’s meeting. 3:00 p.m. Work on a presentation for the executive team on how to achieve cost goals in the coming year. Book a flight for a visit to a prospective backup freight shipper. Try to find a way to keep logistics costs in line.

12:30 p.m. Check on the status of our various suppliers.

4:00 p.m. Calls to various West Coast carriers and vendors.

1:00 p.m. Call with one of our largest freight carriers. I negotiate hard for a better rate for the coming year. For their part, they are anxious to get our business in the

5:00 p.m. Head to the sports club for a short workout before heading home. One of the best things about Minneapolis: You can afford to buy a home!

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At a glance

Education: Bachelor of business administration Experience: 2 years The business analyst, a specialized type of supply chain analyst, spends the better part of his days meeting with clients, learning new software applications, documenting business processes, and dealing with vendors. In positions like this one, consulting firms groom their future leaders, so it can be a fast track to a top business school or the upper echelons of corporate life. It’s not unheard of—and, in fact, quite common—for a good business analyst to get job offers from client companies.

A Day in the Life of an Inventory Analyst 8:30 a.m. The usual check of e-mail.

11:00 a.m. Serve as the voice of inventory at a marketing meeting for an upcoming promotion.

2:30 p.m. Follow up with changes to forecast, start on new analysis based on meeting with manager.

“Business analysts get stuck with a lot of the grunt work, but you learn more than anyone else at your level and the job is an great stepping stone.” WETFEET INSIDER GUIDE

FOR YOUR REFERENCE

5:00 p.m. Head home. Rest a bit before volleyball practice. I play in a local volleyball league, but I’m hoping to get a company team together.

10:00 a.m. Our client is one of the largest drug distributors in the world. We have a team meeting that includes myself, our project manager, two other analysts, a consultant, and about ten people on the client side. This meeting is just to discuss progress, issues, and the like.

Getting Hired

1:30 p.m. Meet with my manager to go over my inventory forecasts for January. Report to her the marketing team’s plans for upcoming promotions. She thinks the idea will ravage inventory, so I hang on for a conference call. They are locked on this, but marketing often wins.

9:00 a.m. As usual, check e-mail. Call our corporate travel agent to get a flight for advanced SAP training next week. I have a desk at our client’s corporate office, where I’ve been parked for the last year. Luckily, it’s only an hour’s flight from my home office.

The Workplace

12:30 p.m. Pile into the car with the other new hires and head out to the local deli.

A Day in the Life of a Business Analyst On the Job

9:00 a.m. Start on forecasts that my manager gave me yesterday afternoon for January. It’s probably our most exciting time, forecasting what the holiday rush will do to our January inventory.

The companies

Business Analyst

Education: Bachelor of business administration Experience: 1 year Inventory specialists such as analysts spend days analyzing historical data, forecasting inventory requirements, and supporting operations and marketing departments. The work can get tedious, but it’s a vital company function, which means it provides great exposure.

The Industry

Inventory Analyst

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11:00 a.m. Meet with our project manager and discuss a client presentation she wants me to create based on my progress to date.

At a glance

1:00 p.m. Show my client a mock report and look for her feedback. Try to make my clients feel as involved as possible in the process.

2:30 p.m.

The Workplace

The companies

12:00 p.m. Have lunch with my main client contact, the manager of Western Region Distribution, at a local tacqueria. We talk about her reporting requirements.

On the Job

The IndustrY


1:30 p.m. Analysts are often given the task of planning training. I have a call with the warehouse manager to discuss who we should schedule for training. Lead a session with a marketing group to go over their system requirements. I’m careful to not promise too much from a system.

5:00 p.m. Type up notes that we made on the butcher paper during today’s session with marketing. Talk to the distribution center manager again and discuss a site visit for the following day.

FOR YOUR REFERENCE

Getting Hired

6:00 p.m. Work on my status presentation for my project manager. 8:00 p.m. Show the presentation to my manager. She quickly red inks a good portion of it. 8:30 p.m.

Our project team heads out for a steak dinner and drinks. Typically, it’s dinner with the team. Tasty, but I’ve gained 15 pounds since starting work for the firm. During dinner I talk to my manager about getting a recommendation from her for B-school.

10:00 p.m. Back at the hotel working on changes to the presentation. In bed by midnight. 62


Materials Scheduler Education: Bachelor of business administration Experience: Less than 1 year The materials scheduler coordinates the movements of inventory—raw materials and parts—with production cycles. It’s an entry-level function that can lead to roles within materials management and logistics.

A Day in the Life of a Materials Scheduler 9:00 a.m. My life, if everything goes well, is pretty routine. We work on 4-week production cycles. Ideally, there aren’t many hiccups in the system. I get to work and hope the voice-mail light isn’t flashing. Check e-mail and log into our ERP [enterprise resource planning] system to see the status of the latest shipment of raw materials for the next production batch. 10:00 a.m. Meet with my manager. She has me do an analysis of the quality of the materials that we receive. 11:00 a.m. Have my daily meeting with the production group and find out what the production forecast for the next cycle is. 12:00 p.m. Lunch at the Chinese restaurant—I’m a hot-and-sour soup junkie—down the road from our office. 1:00 p.m. Log the requirements for the next shipments in our ERP system and do the analysis my manager requested. 3:00 p.m. My manager requests another analysis on the costs of our raw material inventory over the last 6 months by supplier. 5:00 p.m. Dash out to the parking lot and head home for the day.

At a glance

Railroad Product Manager

12:30 p.m. Meet with my director and other team members, including an operations director and a reservations manager, to discuss why a train that morning had been far from full, and steps we can take to make sure that train performs better moving forward. 1:00 p.m.

4:30 p.m. Check e-mail from home to make sure nothing else has flared up. Continue work on some customer rate reviews, then finalize a customer communication about an upcoming storage rate increase. 6:30

Send the customer communication to the customer service department. Shut down. WETFEET INSIDER GUIDE

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FOR YOUR REFERENCE

10:00 a.m. A vice president calls me from a customer location to ask a question: The customer, who has special service requirements—in this case, the customer needs to ship dangerous materials—wants to know about capacity on one of our new lines. I go to our container planning folks to learn whether we have the capacity the

4:00 p.m. Head home from the terminal.

Getting Hired

9:30 a.m. Look through operations reports to learn more about our shipping patterns, as part of ongoing analysis.

The Workplace

7:30 a.m. Go to work attacking the first issue: a customer who’s complaining that they’re not getting enough space allocated to them on our trains. Pull our contracts with the customer and review. Call account manager to learn more about the issue. Visit our pricing analyst and our revenue analyst, then make a recommendation to the account manager: We can’t offer this customer any more space on our trains unless they agree to a rate increase.

Go to intermodal terminal to meet with a good customer who does a lot of business with us. Talk with the customer and with our people at the terminal to iron out the details of a new agreement. The customer’s trucks already do 25 percent of their daily pick-up volume between midnight and 4 a.m. We’re now going to give the customer unlimited access to the terminal between those hours, meaning its drivers will have shorter wait times, and they will be able to offer quicker service to their customers. In return, we reduce peak-time congestion at the terminal, and improve our 24/7 asset utilization.

On the Job

7:00 a.m. Arrive at work, check e-mail and voice mail. Learn about several issues that I’ll need to address today.

12:00 p.m. Lunch at my desk.

The companies

A Day in the Life of a Railroad Product Manager

customer wants, and at what pricing. I also contact operations folks in the field, to learn whether we can in fact handle the customer’s special service requirements. Then I reply to the VP, telling him that we do have the capacity the customer needs, and filling him in on the pricing details.

The Industry

Education: MBA Experience: 6 years The railroad product manager is a specialized production manager responsible for making sure that trains leave the station as full as possible and operate as profitably as possible. The product manager drives the creation and management of product strategy, and communicates that strategy to sales and other staff. Along with sales and account management staff, the product manager works with customers to develop specific offerings, making decisions on scheduling and pricing.

The Workplace

5

Lifestyle and Hours........................ 66 Workplace Diversity....................... 66 Compensation and Benefits........... 67 Career Path.................................... 67

Insider Scoop................................. 68



Lifestyle and hours Supply chain management is a function

that resides across industries; therefore, lifestyle and corporate culture are somewhat industry-dependent. Of all the industries that supply chain management touches, consulting is one of the most taxing. Eightyto 100-hour weeks are hardly foreign to consultants working in Big Four consulting firms. As well, those with front-line careers in the field—for instance, operations folks in the transportation industry—make a sacrifice in hours and work/life balance: these jobs involve 24/7 availability to put out fires and make sure the trains are running on time. Within other industries, the work/life balance is more tenable. Even so, as supply chains become more integrated, far-flung nations become interconnected, and manufacturing becomes just-in-time, the likelihood of working longer or odd hours increases. That said, companies with strong SCM competencies are often among Fortune magazine’s “100 Best Companies to Work For.”

Hours With the exception of consulting and transportation operations, a firm’s culture is likely to have the greatest effect on the number of hours you must work. A startup, or a behemoth with a startup mentality like Amazon.com will certainly be more demanding of your time than the U.S. Postal Service. Of course, as you rise up the corporate ladder, a firm’s demand on your time will increase with every rung.

Travel Because supply chain management is becoming increasingly global, the field offers a multitude of opportunities for travel and overseas assignments. Often, new MBA recruits are offered the opportunity to go overseas on a management training rotation. Visiting a factory or supplier often means going to Southeast Asia, Latin America, and increasingly, 66


Eastern Europe once a quarter. Those seeking a career in consulting, of course, can expect nearly 100 percent travel.

Vacation Vacation policies in supply chain management truly mirror the industries wherein they reside. Traditional manufacturing companies tend to offer generous vacation packages. GM for instance, offers 14 paid days off a year, a standard 2-week vacation policy that eventually ratchets up to 5 weeks after 22 years of service.

Workplace Diversity While supply chain management and its affiliates logistics, distribution, and procurement aren’t exactly known as rainbows of diversity, the times, they are a changing. IBM and General Mills rank among the best places to work for minority women, according to Working Mother magazine. Nike and Starbucks π Diversity can be hard to find A 2003 Ohio State University study of career patterns in logistics found that 91 percent of the logistics professionals polled in its survey were male, down from 95 percent in 1997. Part of the reason for the poor showing is the nature of supply chain management. Job functions tend to be highly specialized and require specialized schooling and

certification; the SCM function can’t simply diversify by hiring from different functional groups. Furthermore, the career ladder is a rung-by-rung climb in supply chain management, making it difficult to fast track women and minorities into management positions. Nevertheless, companies are making efforts to increase diversity in the workplace

At a glance

While there is no single career trajectory in SCM, it’s unlikely that a supply chain manager will become CEO or even COO. The career path tops out at vice president of supply chain management. In the past this has been due to the fact that logistics positions have been very specialized roles. More recently, supply chain management has been a cross-functional role, but in most corporations it has yet to become a road to the upper echelons. insider SCOOP

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FOR YOUR REFERENCE


Getting Hired

Unlike consulting or investment banking, where the path to partner averages 10 years, the road to the executive ranks in supply chain management is a slow one—it’s better to be a tortoise than a hare in this field. The median age of supply chain vice presidents is 49, which means the cream takes some 25 years to rise to the top in the field. The median age of directors is 48. The trek to manager takes an average of eight years. Some back-of-the-envelope math shows that executives at the top of the field have a good 10 to 15 years left in them. The good and bad news is that supply chain roles are highly specialized. Not only is it somewhat difficult to cross over mildly different functional roles, but functional knowledge doesn’t transfer completely across industries. This means that one can’t easily hop from one industry to the next: a supply chain manager at Wal-Mart would be of little use to BMW. While this

The Workplace

“Marketing, finance, and operations have wellrooted places in the corporation. Supply chain management doesn’t ‘belong’ in that sense. It’s difficult to be heard and seen.”

On the Job

The links in the supply chain are cast in gold, at least for those lucky enough to find themselves in executive roles within the field. Needless to say, you’ll have to clock a significant number of hours in the industry before you reap those kinds of rewards. VPs and directors both served on average more than 20 years in the industry; managers 13 years. According to a survey conducted by the Institute for Supply Management in 2007, the median salary income for a director of logistics was $116,900, including bonus. Salaries depend on the industry. High-tech companies like computer manufacturers, pharmaceuticals, and medical device manufacturers tend to pay far more than basic manufacturing firms. When it comes to benefits, the supply chain function is all over the map. 401(k) plans are standard throughout manufacturing, but employer-matching programs are less common. Technology and medical device manufacturers often offer matching 401(k) programs and stock benefits. Growth companies such as Amazon.com and Starbucks offer stock option packages to non-executives. The biggest perk unique to manufacturers and retailers derives from the nature of those industries—that is, they either sell or make products, which employees are eligible to receive discounts on. So if you work for Gap or Nike, you

Career Path

The companies

Compensation and Benefits

can get discounts on apparel and shoes. If you work at Starbucks, you can feed your addiction with a free pound of coffee every week. And you can get a hefty discount on your Jaguar if you work at Ford or your Saab if you work at General Motors.

The Industry

made Fortune’s “100 Best Companies for Minorities” ranking in 2007, while General Electric, General Mills, Ford, Intel, and Johnson & Johnson were all among those on Working Mother’s “100 Best Companies for Working Mothers” 2007 list. For women and minorities willing to brave a homogeneous field, there are real opportunities. Not only are large companies actively recruiting for diversity, but the ranks of SCM executives are aging, leaving a vacuum for ambitious professionals to fill.

aT a glaNcE ThE INDusTry ThE cOmpaNIEs ON ThE jOb

means it is difficult to transfer easily, it also means that there are fewer candidates nipping at your heels ready to take your job.

uNDErgraDuaTEs Undergraduates tend to start as logistics planners, buyers, SCM analysts, customer support representatives, or inventory analysts. More difficult to obtain are roles as business analysts in consulting firms.

mbas MBA titles sometimes do not differ from those of undergraduates. For instance, an MBA might land a perfectly good job as a supply chain specialist. The difference between an undergraduate and an MBA job, other than remuneration, is level of responsibility. Additionally, MBAs often begin their careers in rotational programs, doing four 6-month stints in various SCM functions. The recent economic downturn, however, saw the cessation of many of these programs.

mIDcarEEr caNDIDaTEs Midcareer professionals tend to stay within their industry and job function for the reasons mentioned above. This means that it’s extremely difficult for a midcareer professional to make an industry switch without significant retooling in terms of education and certification. Within an industry and a function, however, seasoned professionals tend to be welcomed.

gETTINg hIrED

ThE WOrkplacE


the InsIde sCOOp WhaT EmplOyEEs rEally lIkE Change Is Your Friend “Change is relentless in supply chain management,” says an insider. Supply chains are so complex that as soon as you develop a solution, a variable will change, causing you to create a new solution. “It doesn’t allow you to stagnate, and that’s a good thing,” says an insider.

The Real World “You deliver a real product; you can put it in your hand and touch it; it’s not a ‘solution’ or some other intangible thing,” says an insider. Supply chain managers don’t just push bits and bytes, they are moving real things around the world.

I’m Special The skills in the supply chain world are difficult to come by; this has a certain guild effect, making it difficult for outsiders to join. This protects supply chain management from hordes of job seekers looking to cash in on lucrative positions.

On a Clear Day . . . SCM professionals have a nearly clairvoyant knowledge of the operations of not only their own company, but those of most others in an industry as well. In some cases, supply chain managers are the best forecasters of demand.

Cross-Pollination

FOr yOur rEFErENcE

Supply chain management, when done properly, touches not only manufacturing and distribution, but also product development, marketing, and legal. “I feel that my exposure to these functions makes me much more marketable,” says an insider.

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At a glance

International Bright Young Things

Watch Out! Slow . . .

You’d better love your job especially if it’s in the field— in transportation operations. Why? Transportation is a 24/7 business. Trucks and trains are criss-crossing the continent every minute of every day. To make sure this continues to be the case, people in some areas of the transportation industry work some pretty crazy, unpredictable hours. Achieving work/life balance can be a challenge.

The companies

The rate of advancement in supply chain management is glacial; it takes on average nearly a decade to rise to the rank of manager and 15 years to rise to director and VP levels. “It frustrates me how long it will take to get ahead,” says an insider.

Singin’ the Workin’-in-Transportation-CanMean-Crappy-Hours Blues

The Industry

Because supply chain management has become a truly global function, opportunities for international assignments, especially in Asia and Latin America, abound.

. . . and Low On the Job

The conventional wisdom in the field is that SCM roles lead to a VP-level position. For the ambitious souls who dare to dream about executive management positions (CEO, COO), there are probably other functional areas that are more likely to fulfill those dreams.

The Workplace

Where Do I Belong? Because supply chain management is a relatively new field with no set functional area, insiders find it difficult to get the support they need within an organization.

Square Pegs, Round Holes Getting Hired

Supply chain roles tend to be highly specialized. The problem with developing such a specialized skill set is that it limits the number of jobs you’re qualified to do. “I was lucky to find one of the five jobs in the world I was qualified to do here,” says one insider with a PhD in supply chain management.

Change, the Enemy FOR YOUR REFERENCE

Change is a double-edged sword. Just as insiders thrive on it to make their jobs interesting, change also tires them. “You just wish things would stay the same for a while,” says an insider.


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Getting Hired

6

Getting in the Door....................... 72 The Recruiting Process................... 72 Interview Tips................................ 72 Getting Grilled............................... 74 Grilling Your Interviewer............... 74

aT a glaNcE ThE INDusTry ThE cOmpaNIEs ON ThE jOb ThE WOrkplacE gETTINg hIrED FOr yOur rEFErENcE


GettInG In the dOOr Typically,.SCM.recruiters.are not looking for

generalists, even at the undergraduate level. Most firms and organizations have a select group of programs from which they recruit, and those programs, such as Arizona State, the University of Tennessee, and the University of Wisconsin at Madison, tend to offer degrees in supply chain management and logistics. If you aren’t in a school at which the firm recruits, an internship might get you in the back door. Because the market is soft now, firms are demanding industry and functional experience even for entry-level positions. In the MBA world, firms look for supply chain coursework or dedicated supply chain programs. Certifications aren’t required, but they do help in a slack market. Common certificates are Certified Purchasing Manager (CPM) and Certification in Production and Inventory Management (CPIM). Nearly one quarter of purchasing professionals hold a CPM certification, and nearly 10 percent hold a CPIM.

uNDErgraDs Most major companies populate their entry-level positions through college recruiting drives. The best way to find out about these opportunities is through your career center or on a company’s website for a roster of target schools. Many smaller companies don’t have the resources to conduct extensive on-campus recruiting drives, or they do so only at a few campuses. This shouldn’t deter you from applying; many candidates have landed jobs this way. Nevertheless, given the current economy, you’ll need to be persistent.

mbas Most major companies do have established MBA recruiting programs, but hardly any have the recruiting juggernaut found in financial services and consulting. Firms that recruit heavily tend to have 72


> tIp If the firm doesn’t hire at your school, show some tenacity. You may still be able to schedule an interview—especially if you have a technical background.

spots open for all disciplines—operations, finance, marketing, and human resources in addition to supply chain management. As they do with undergraduate recruiting, most firms do the majority of their hiring from a list of target schools.

the reCruItInG prOCess Most.fi.rms.we.spoke with hire both seasoned and green hires—so not all recruiting comes from universities. If you’re an experienced hire with the right skill set, your best bet is to find a headhunter or look directly at company websites for jobs. For undergrads and MBAs, most companies have a set of target schools from which they recruit. If a company you’re interested in doesn’t recruit, call the company directly to schedule an interview. For MBAs, there are a number of companies with rotational positions and management training roles. But many of the full-time slots in such programs are taken up by people who have gone through summer internships.

At a glance

Be Ready for Anything

Know the Lingo

The SCM function covers a wide landscape both in terms of types of companies and types of jobs; there is no single set of interview questions that will work for all people at all times, or even most people most of the time. Moreover, there is wide variability in how companies within the industry interview. Ford, for instance, conducts initial interviews at career fairs at its target schools—screening for fit, credentials, and general competency—and then flies candidates to a “Leadership Conference,” basically a group interview session, to evaluate candidates in more depth. Firms vary in their use of behavioral and case questions. More and more firms are moving toward a group interview and role-playing process in secondround interviews—they are looking for leaders and communicators and people who fit in with the culture.

Though no one presumes you to be an expert in the industry, you can only help yourself by getting familiar not only with the vocabulary of the industry, but also with the basic structure and issues of the industry. Your interviewers will appreciate that you speak the same language and don’t require any translation or dumbing down. Understanding the industry and the jargon will give you an advantage over your fellow interviewees— it helps to go native.

Read Up

Once you’re up to speed on the industry, you can investigate job functions in your discipline and match them against your skill set. Since companies often rotate new hires through jobs as part of leadership programs in their first few years at the company, they often look for aptitude and general competency rather than a particular skill set. In any case, you’ll want to show your interviewer that you’re able to hit the ground running and execute as soon as possible.

Be a People Person People skills are paramount and political savvy is key—as a supply chain manager, you’re very likely to be working with people who have been on the job 30 years longer than you have and possibly with little advanced education. This means you need to be able to deal with people unlike yourself. Expect interviews

Get Personal While personal relationships don’t hold the manufacturing, retail, or logistics industries together WETFEET INSIDER GUIDE

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FOR YOUR REFERENCE

Be Quick on Your Feet

Firms have a Six Sigma mentality and are looking for candidates with built-in attention to quality. You should be meticulous in every part of your selfpresentation. You also need to be able to communicate both in oral and written contexts.

Getting Hired

Communicate Effectively

The Workplace

Companies such as Dell, Target, Starbucks, Wal-Mart, Nike, and FedEx have entire books dedicated to the company’s narrative, from which you can mine useful gems for interviews. If you are interviewing at GE or one run by a GE alumnus, be sure to read Jack Welch’s Jack: Straight from the Gut; the book gets straight to the heart of GE culture. We’ve also included at the end of the guide references to articles and books that have supply chain management as a central theme. By doing your homework, you’ll show employers that you’re serious about working for them while adding subtlety and complexity to your understanding of the role for which you are interviewing.

On the Job

“If you can’t communicate your solution to anyone, how is it a solution?”

The companies

to cover these social aspects of work as well as your technical or subject matter expertise.

The Industry

Interview Tips


Careers in Supply Chain Management the way they do in the entertainment industry, venture capital, and other less-structured work environments, you should check to see whether you have any contacts at the company you’re interested in. Continue by researching the pedigrees of the executive management team. Companies often hire a disproportionate number of candidates from their alma maters. Set up an informational interview to get the scoop on the company, culture, and interview process, as well as how to get your resume in the right hands.

Getting Grilled Here are some all-purpose questions that interviewers often ask. Many more will apply specifically to your position or industry. •

What about supply chain management excites you?

•

How would you apply Six Sigma practices to this position?

•

What are some of the most promising trends for supply chain management?

•

What are your short- and long-term goals?

•

Where do you see yourself in 5, 10, or 15 years?

•

Tell me about a time you had to use persuasion to reach your goals.

•

Tell me about some of the ways you communicate with your peers when you work in a group.

•

When you work in a group, what role do you play?

74


•

Tell me about a time when you worked in a group of people with diverse backgrounds.

•

Tell me about a time when you had to motivate a team to finish a project.

•

Tell me about how you deal with unstructured problems.

•

Tell me about a time when you took a leadership role on a project.

•

Give me an example of a time when you set a goal and the steps you took to reach it.

•

Give me an example of a time you didn’t meet your goal (or failed).

Grilling Your Interviewer The following are good general questions that suit most companies. You’ll also want to think of questions specific to the sectors and companies you are targeting. •

What are some of the effects that mergers and acquisitions have had on your industry?

•

To what degree have you applied lean manufacturing principles to your organization? What improvements have you seen?

•

What are some of the representative career paths of people who started at the company 5, 10, 15 years ago?

•

How does supply chain management fit in your organization? What incentives do people outside the function have to follow the recommendations of supply chain management?

At a glance

•

How are your business units integrated? What are some of the ways different business units interact?

•

What are some of the career avenues I can explore 5 years down the road?

The companies

How will your company perform in a protracted downturn?

The Industry

•

On the Job The Workplace Getting Hired FOR YOUR REFERENCE


75

For Your Reference

7

Industry Jargon.............................. 78 Articles........................................... 83 Book.............................................. 83 Professional Organizations . and Communities.......................... 84


Careers in Supply Chain Management We gathered the following terminology, articles, books, and online resources from our interviews with industry insiders and through our own research. They provide a grounding in the jargon and classic literature of supply chain management as well as a jumpingoff point for you to explore the function of supply chain management and logistics, businesses for whom logistics plays a significant role, and topical themes and events within supply chain management.

Industry Jargon The following are terms widely used in supply

chain management. Because knowledge of Six Sigma and lean manufacturing techniques are becoming highly sought after, we included terms germane to those disciplines.

3-PL (third-party logistics) An organization that performs logistics functions using its own assets and resources for another company or organization.

4-PL (fourth-party logistics)

containing, of all things, 7 steps: 1. 2. 3. 4. 5. 6. 7.

Select a theme Collect and analyze data based on that theme Identify the root cause Plan and implement a solution Confirm results Standardize the solution Reflect on and critique the process

Acceptance An agreement to purchase goods under specified terms.

Activity-based costing (ABC) A managerial accounting technique that, unlike traditional managerial accounting, breaks down the costs of a product by the set of activities used to produce that product. For instance, rather than lumping all effort to produce a product into labor, ABC calculates the cost of each of the significant activities required to produce a product from the customer order to delivery.

Agent A person who is authorized to conduct business on behalf of another person or organization.

4-PL practitioners perform the role of master integrator and synchronizer of multiple firms across various industries leading to optimal supply chain operations.

Alignment

5S

Based on the Japanese word for lamp. A visual device, such as a colored light, in a production area that displays the current status of the production system and alerts team members to emerging problems. For instance, a green light would mean okay; yellow, a problem emerging; red, a major problem. Part of the Andon concept is that any worker on the assembly line can change the status of the assembly line if he or she detects a problem.

An approach to elimination of waste based on five principles: sort, straighten, sweep, standardize, and self-discipline. They make less sense in English than they do in Japanese as they strain to capture the meaning of the Japanese originals in words beginning with S.

7-step process A problem-solving process developed at Teradyne 78


The process of matching supplier capability with market or user needs.

Andon board

At a glance

Approved vendor list (AVL)

down by a retailer and sold by the can to end users).

Breakthrough

Automated storage and retrieval system (AS/RS)

Capacity

The Industry

Vendors with which a company has contracts to purchase items.

A dramatic improvement in a work process.

Balanced plant

Carrier

A plant that balances its capacity and resources directly against market demand.

Any company that transports goods under contract via air, land, sea, or some combination thereof.

Backhaul

Cash on delivery (COD)

A return trip for a carrier in which it carries a load; as opposed to deadhead, in which the carrier has an empty load.

A shipment that must be paid for upon receipt by the buyer.

Benchmarking

A disagreement among members of a supply chain. For example, a computer manufacturer may have conflict with its resellers if it decided to sell directly to consumers through a company website, thereby alienating the resellers.

The process of measuring performance and results and comparing them to those of similar organizations.

A legal document between carrier and shipper used to conduct operations when goods are transported.

Bill of materials (BOM) A listing of all of a product’s subcomponents.

Any factor that limits production capability.

Covariance The phenomenon wherein one variable affects other variables within the same group.

Cross docking The process of moving items from an inbound vehicle to an outbound vehicle without putting them into storage. For instance, a distribution center might break down a shipment of diapers from a manufacturer and load those diapers onto trucks immediately bound for retail stores.

Break bulk

Cycle time

Breaking down a shipment from a manufacturer into smaller components (e.g., a case of cola is broken

Time required to complete a set of operations. WETFEET INSIDER GUIDE

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FOR YOUR REFERENCE

The process in a production line that limits production. For instance, the painting process in an automobile assembly plant might only have a throughput of two cars an hour, where all of the other processes have throughputs of more than four cars an hour. The painting process, therefore, would be the bottleneck. A production line’s maximum throughput is equal to its bottleneck.

Constraint

Getting Hired

Bottleneck

The Workplace

Bill of lading

Channel conflict

On the Job

The amount of shipping space available on a specific means of transportation, such as a truck or fleet of trucks or a train.

The companies

A system that automatically stores and retrieves inventory at greater density and faster than manual operations.

At a glance The IndustrY The companies

Careers in Supply Chain Management Demand chain

Inventory

Supply chain, as expressed from the viewpoint of an end user. The term is in favor because it suggests that market demand should drive production.

Inventory includes all raw material, work in process, and finished goods that have not yet been sold to a customer.

DC

Just in time (JIT)

Distribution center.

A production methodology whereby inventory is kept at a minimum by producing only what current demand requires. The three principles of JIT are takt time, flow production, and pull systems. Dell’s made-to-order model of doing business is an example. JIT production not only frees up capital that would be otherwise tied up in inventory, it is also critical in industries where inventory obsolesces quickly—as in the computer industry.

Downstream Refers to the transactions that move a product to its end user. For a manufacturer, this means moving a product to a retailer or a wholesaler; for a retailer, it means moving a product to a consumer. Compare to Upstream.

Getting Hired

The Workplace

On the Job

Economic order quantity (EOQ) Size of order that minimizes fixed and ordering costs.

Flow production The process of production in small quantities and sequential steps, rather than in large batches.

Free on board (FOB) Shipped at a rate that includes delivery and loading.

Freight forwarder A person who dispatches shipments via common carriers and books or otherwise arranges space for those shipments on behalf of shippers and processes the documentation or performs related activities incident to those shipments.

Gray market Market in which a product is sold other than that which the manufacturer intends.

FOR YOUR REFERENCE

Great circle route The shortest distance between any two points on the earth.

Intermodal Transportation using a combination of carrier types, for example, rail and motor vehicle. 80


Kai aku A lean marketing term meaning change for the worse—never a good thing.

Kaizen Continuous improvement through incremental improvements.

Kanban Japanese for card, a resupply order attached to a product, triggering production further up the supply chain.

Lead time The time it takes to produce a single product, from customer order through manufacturing to shipment.

Lean manufacturing The approach developed by Toyota of shortening the production time of a product from customer order to delivery through the elimination of waste and incidental work.

Less than truckload (LTL) A carrier that accepts only small (less than truckload) shipments for a trailer.

At a glance

Mass customization

dependent activities.

Pull system As-needed production based on signals (kanban) from downstream processes that tell the upstream processes when to operate.

Purchase order (PO)

A system in which production occurs and “pushes” product down the supply chain regardless of product demand and downstream factors. Push systems tend to be inventory rich and risk overproduction.

Reverse logistics The field of managing returns from customers to the manufacturer.

Radio frequency identification (RFID)

Request for quote (RFQ)

A mistake-proofing device or procedure to prevent a defect during order-taking in the supply chain process.

A request by a buyer for a seller to respond with a quote for a particular quantity of items.

Process

Roll on, roll off (RO-RO)

A series of definable, repeatable, and measurable steps used to complete an action.

A ship from which trucks can drive on and off.

Program evaluation review technique/critical path method (PERT/CPM)

A data plot of a process over time used to detect trends and errors in production.

Run chart

Safety stock WETFEET INSIDER GUIDE

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Project management techniques based on achieving the minimum length of time to perform linked or

Getting Hired

Poka-yoke

Pick-to-light

The Workplace

System by which a light board instructs warehouse pickers what and how much to pick.

A type of label or badge that is read electronically rather than optically. The reader doesn’t have to touch the label to read it. Typical storage content is 126 bits of information. Some RFID labels are rewriteable— that is, new information can be inserted. The cost per label is higher than that of a printed bar code label, though the cost of RFID technology is decreasing steadily.

The process of picking items from storage to fulfill customer orders.

On the Job

Push system

A problem-solving tool in the form of a vertical bar graph showing the bars in descending order of significance from left to right. A Pareto chart focuses improvement activity on a few major causes rather than on the many insubstantial causes. This framework is called the Pareto principle. The meme has spread with viral efficiency throughout business and organizations as the 80/20 rule, in which 80 percent of the problems are accounted for by 20 percent of causes.

The companies

Request by a buyer to a seller for a certain number of items.

Pareto chart

Picking

The Industry

The practice of developing customized products on standardized components. For instance, a clothing manufacturer might develop a line of clothing with multiple jacket styles (customization) but with uniform, both in color and size, zippers and buttons— thereby allowing the producer to minimize inventory while maximizing product variety. Mass customization works on the principle of carefully selecting what components of a product will be nonstandard.

At a glance The IndustrY

Careers in Supply Chain Management Inventory kept on hand in between orders to account for uncertainty in the order fulfillment process.

product from manufacture to retail. Sometimes supply chain is extended to include product development.

Sensi

Takt time

In lean production, an outside master who is brought in to assist in production.

The desired time between output of units of production, synchronized with customer demand. This principle is key to lean production.

Getting Hired

The Workplace

On the Job

The companies

Shrinkage Term for discrepancy between actual inventory and inventory on record. Shrinkage is loss due to theft, spoilage, breakage, or shipment to the wrong location.

Shusa The team leader responsible for designing a new product and putting it into production (lean production).

Six Sigma The mantra of almost every operating organization. A methodology for increasing control of production processes and thereby increasing customer satisfaction. Sigma refers to the Greek symbol for standard deviation. Six Sigma means controlling a process to six standard deviations, which translates into 3.4 defects per million. In other words, a maniacal focus on quality.

Slotting The process of deciding where items reside in a warehouse or retail store. For instance, high volume items might be kept near the loading dock.

Stock-keeping unit (SKU) A product identifier associated with a purchasable product.

FOR YOUR REFERENCE

Suboptimization The process by which productivity gains produced by optimization in one activity are offset by productivity losses in another.

Supply chain management The process of optimizing the events in the life of a 82


Total quality management (TQM) A philosophy of process improvement based on five tenets: customer focus, continuous improvement, measurement, total involvement, and systematic support.

Upstream The flow of goods and services from a supplier to a company. For a manufacturer, this typically entails moving inventory and component parts into its manufacturing facilities; for a retailer or distributor, it usually involves moving finished goods from a manufacturer to a distribution center. See Downstream.

Utilization The percentage of a resource’s capacity that is used.

Waste In lean production, the things that make production fat. Specifically, there are seven wastes in lean production. The Japanese term for waste is Muda. 1. 2. 3. 4. 5. 6. 7.

Overproduction Transportation Motion Waiting Processing Inventory Defects

Whiplash effect The disconnect between supply and demand in manufacturing that produces hyperbolic swings, or whiplash, in inventory. The effect works because of

At a glance

Zone skipping

“The Wal-Mart You Don’t Know” The article explores Wal-Mart’s treatment of its suppliers. Source: Charles Fishman, Fast Company, December 2003

Books

Essentials of Supply Chain Management

This article discusses a senior official’s claim that the IT industry is facing a shortage of professionals experienced in RFID technology.

Michael H. Hugos (Wiley, John & Sons, 2006) Through illustrative real-world examples, insider tips, and technique descriptions, this book gives advice on the latest strategies, developments, and technologies in supply chain management.

Source: Lynn Tan, BusinessWeek, March 13, 2007

“Ridge Says RFID Boosts Security”

Source: Mark Baard, Wired, April 12, 2005

“Motorola Makes Big Supply Chain Investment in Singapore” The communications giant invested $60 million to manage its global supply chain from the city-state. Source: Aaron Tan, ZDNet Asia, June

Perhaps one of the best articles written about RFID. Want offers a clear and insightful explanation of the technology, technology and business hurdles, and

Eliyahu M. Goldratt and Jeff Cox (North River Press Publishing, 1992) This narrative dramatizes one plant manager’s discovery of operations techniques and subsequent turnaround of a factory in the Rust Belt. A B-school classic.

Jack: Straight from the Gut Jack Welch with John A. Byrne (Warner Books, 2001) Jack Welch’s best-selling book about his years at GE. A must for anyone going into GE or a company run by GE alumni—from Home Depot to Solectron. WETFEET INSIDER GUIDE

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FOR YOUR REFERENCE

“RFID: A Key to Automating Everything”

The Goal: A Process of Ongoing Improvement Getting Hired

Tom Ridge discusses RFID technology as an efficient method for tracking inventory and protecting Americans from terrorism.

The Workplace

“Skill Shortage Hits RFID Growth”

Articles

On the Job

The following articles offer a glimpse of the kinds of supply chain management issues and trends that have been on the mind of the popular press recently.

The following books are not so much howto manuals as they are lively accounts of life within supply chain management and the companies that rely heavily on supply chain management to succeed. Many of these volumes are considered classics, because of their lively telling, the management principles they illustrate, the unique historical situation they describe, or any combination of the three.

The companies

The process by which a supplier uses its own transportation to haul goods partially to a customer, then uses a public carrier such as UPS to deliver the final leg of the journey, thereby avoiding “zone” charges for the shipper.

privacy issues involved in RFID. Source: Roy Want, Scientific American, January 2004.

The Industry

the lags between retailer, wholesaler, distributor, and producer. Each agent works independently, meeting his own needs and padding inventory as needed, which produces wild fluctuations in inventory.

At a glance The IndustrY

Careers in Supply Chain Management Harvard Business Review on Managing the Value Chain Douglas M. Lambert et al. (Harvard Business School Press, 2006) Supply chain viewed through the various lenses of Harvard Business Review writers.

Sam Walton with John Huey (Bantam, 1993) The man who created the country’s largest retailer recounts one of the great business stories of the 20th century.

The Six Sigma Way: How GE, Motorola, and Other Top Companies Are Honing Their Perfomance Peter S. Pande, et al. (McGraw-Hill, 2001) Pande, et al., delve into the ways in which GE and Motorola have used the process improvement in their organizations to achieve stellar operating and financial results. Six Sigma refers to the tenant of statistical process control that allows for only 3.4 parts per million standard deviation from a defined process.

What Is Six Sigma? Peter S. Pande, et al. (McGraw-Hill, 2001) A shorter primer on Six Sigma than the above selection.

FOR YOUR REFERENCE

Getting Hired

The Workplace

On the Job

The companies

Sam Walton, Made in America

84


Professional Organizations and Communities American Society of Transportation and Logistics, Inc. (www.astl.org) Council of Logistics Management (www.clm1.org) Institute for Supply Management (www.ism.ws) Material Handling Industry of America (www.mhia.org) The International Society of Logistics (SOLE) (www.sole.org) The Stanford Global Supply Chain Management Forum (www.stanford.edu/group/scforum/) Supply-Chain Council (www.supply-chain.org) The University of Tennessee College of Business Administration’s Demand and Supply Integration Forums (http://bus.utk.edu/IVC/)

At a glance

Ace Your Case - Consulting Interviews Ace Your Case® I: Consulting Interviews, 3rd ed. Ace Your Case® II: Mastering the Case Interview Ace Your Case® III: Market-Sizing Questions Ace Your Case® IV: Business Strategy Questions Ace Your Case® V: Business Operations Questions

Financial Services Careers 25 Top Financial Services Firms Careers in Accounting Careers in Asset Management and Retail Brokerage Careers in Investment Banking Careers in Venture Capital


FOR YOUR REFERENCE

INTERNATIONAL CAREERS 25 Top Global Leaders The International MBA Student’s Guide to the U.S. Job Search

Industries and Careers: Specific Careers in Advertising and Public Relations Careers in Pharmaceuticals Careers in Brand Management Careers in Consumer Products Careers in Entertainment and Sports Careers in Health Care Careers in Human Resources Careers in Information Technology Careers in Marketing Careers in Nonprofits and Government Agencies Careers in Real Estate Careers in Retail Careers in Sales Careers in Supply Chain Management

Getting Hired

Financial Services Companies Deutsche Bank Goldman Sachs Group JPMorgan Chase & Co. Merrill Lynch & Co. Morgan Stanley UBS AG

Industries and Careers: General Industries and Careers for Engineers Industries and Careers for MBAs Industries and Careers for Undergraduates Million-Dollar Careers

The Workplace

Job Hunting Getting Your Ideal Internship Job Hunting A to Z: Landing the Job You Want Job Hunting in New York City Job Hunting in San Francisco

Career Management Be Your Own Boss Changing Course, Changing Careers Finding the Right Career Path Negotiating Your Salary and Perks Networking Works! Green Careers

On the Job

Resumes & Cover Letters Killer Consulting Resumes Killer Cover Letters & Resumes Killer Investment Banking Resumes

Consulting Companies Accenture Bain & Company Booz Allen Hamilton Boston Consulting Group Deloitte Consulting McKinsey & Company

The companies

Interviewing Ace Your Interview! Beat the Street® I: Investment Banking Interviews Beat the Street® II: I-Banking Interview Practice Guide The Wharton MBA Case Interview Study Guide: Volume I The Wharton MBA Case Interview Study Guide: Volume II

Consulting Careers 25 Top Consulting Firms Careers in Management Consulting Careers in Specialized Consulting: Information Technology Consulting for PhDs, Lawyers, and Doctors

The Industry

WETFEET INSIDER GUIDES series

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the goods moving from vendors to manufacturers to retailers and into the hands of end users. This cross-functional role requires specialized training and long-term commitment, and supply chain managers are typically well compensated for their trouble. As technology advances, companies are looking to increase their investments in supply chain management, forming a bright hiring picture for entry-level and experienced candidates with the right skill sets.

Illustration by mckibillo

>>Supply chain management plays a crucial, if somewhat unheralded, role in commerce. Supply chain managers keep

TURN TO THIS WETFEET INSIDER GUIDE TO LEARN ★ THE SKILLS AND EDUCATION YOU’LL NEED TO GET STARTED IN THE FIELD. ★ THE INDUSTRY LINGO YOU’LL NEED TO SOUND LIKE AN EXPERIENCED PRO IN YOUR INTERVIEWS. ★ PROFILES, KEY NUMBERS, AND RECENT MILESTONES FOR TOP MANUFACTURING, RETAIL, AND LOGISTICS AND TRANSPORTATION COMPANIES THAT RELY ON SUPPLY CHAIN MANAGEMENT TO SUCCEED.

★ RECENT TRENDS IN SUPPLY CHAIN MANAGEMENT AND WHAT THEY MEAN FOR JOB SEEKERS. ★ THE LIFESTYLE, SALARY, AND PERKS YOU CAN EXPECT AS YOU MOVE UP THE CAREER LADDER. ★ TYPICAL JOB DESCRIPTIONS AND CAREER PATHS TO HELP YOU TARGET YOUR SEARCH. ★ WHERE TO TURN FOR EVEN MORE INFORMATION ON SUPPLY CHAIN MANAGEMENT.

WetFeet has earned a strong reputation among college graduates and career professionals for its series of highly credible, no-holds-barred Insider Guides. WetFeet’s investigative writers get behind the annual reports and corporate PR to tell the real story of what it’s like to work at specific companies and in different industries. www.WetFeet.com

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