Welcome Module

• Getting Started

  • Watch: Introduction & Overview

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    Welcome! 

    We're excited to have you join us in this CorpU Open program.

    

    

    

     Take a moment to watch this video where your world-class faculty share their insights about leadership in the contemporary supply chain.

  • Read: Meet Your Experts

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    Throughout the CorpU Supply Chain sprints, you will directly benefit from the real-world experience, research, and skill brought to you by our subject matter experts of The Smeal College of Business at The Pennsylvania State University. Please let us introduce the faculty member who will oversee our sprint this week. 

    Chris Norek: Dr. Chris Norek is an Affiliated Faculty member in Supply Chain Management at Penn State and Senior Partner and founding member of Chain Connectors, Inc., a supply chain consulting and software implementation firm. He has over 25 years of supply chain experience with a unique combination of consulting, industry, and academic perspectives. Engagements include the following areas of expertise: supply chain strategy, demand planning (forecasting and inventory control) strategy, transportation strategy and rate negotiations, distribution network strategy, distribution process, and facility design, SKU and supplier rationalization, and returns management. He has worked for Accenture, a division of SCS Consulting, Apple Computer, and Kimberly-Clark. In addition, he was a tenure-track faculty member at both Auburn University and the University of Tennessee.

    Dr. Norek has published numerous articles and professional papers in leading journals, including Supply Chain Management Review, CSCMP’s Supply Chain Quarterly, Supply & Demand Chain Executive, Achieving Supply Chain Excellence through Technology (ASCET), DC Velocity, LQ Magazine, International Journal of Logistics Management, and Journal of Business Logistics. In addition, he is the creator and recurring columnist for the “Technology Toolbox” appearing in LQ. Dr. Norek is on the editorial advisory board of both LQ and DC Velocity.

    Active in a number of professional and academic organizations, Dr. Norek is the chairman of NASSTRAC, the National Strategic Shipper Transportation Council. He has served the Council of Supply Chain Management Professionals (CSCMP) at both the national and local levels. Dr. Norek received the 2011 NASSTRAC Member of the Year Award. He is also a member and serves on the Advisory Board for Auburn University’s Supply Chain Program.

    You will also hear from Professor John Langley as you watch the videos in the first day's lesson.

    John Langley: Dr. John Langley is Clinical Professor of Supply Chain Management in the Smeal College of Business at Penn State University, and also Director of Development in Penn State’s Center for Supply Chain Research. Previously, Dr. Langley held faculty positions at the University of Tennessee and Georgia Institute of Technology. He is a former President of the Council of Supply Chain Management Professionals, and a recipient of the Council’s Distinguished Service Award. He was also a recipient of the Outstanding Alumnus Award from Penn State’s supply chain program.

    Dr. Langley is well known for being an author of Supply Chain Management, a widely-used university textbook that is currently in its 10^th edition. He is the founder of the Annual 3PL Study, and the study team has just begun work on the 2019 23^rdAnnual Third-Party Logistics Study.

    Dr. Langley has also had significant involvement in the supply chain and logistics industries and serves on the Board of Directors of Forward Air Corporation and Averitt Express. He also has served on the Boards of Directors of UTi Worldwide, Landair, and Metasys.

    Steve Tracey is the current Executive Director for the Center for Supply Chain Research®️ (CSCR®️) and Penn State Executive Programs, and Professor of Practice in Supply Chain Management within the Smeal College of Business.

    In Professor Tracey’s CSCR®️ leadership role, he is responsible for the vision of one of Smeal College of Business’ premier research centers as an ambassador and spokesperson for supply chain activities at Penn State. Through collaboration with the nationally top-ranked Department of Supply Chain and Information Systems faculty within Smeal and CSCR®️ Corporate Sponsors, Professor Tracey promotes meaningful and progressive supply chain research for industry-specific applications and defines research strategy and programs. 

  • Write: Introduce Yourself

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    One significant benefit of learning in a community is the ability to establish and develop relationships with colleagues. The information you share in your profile will help others get to know who you are and what role you play.

    Introduce yourself by filling out the sections below. You can return to this activity any time if you decide to add more detail. Keep in mind that your profile information will be available at a glance to fellow participants throughout this sprint. 

  • Discuss: Meet Your Cohort

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    It’s time to meet your colleagues on this journey, so take a few minutes to begin a brief discussion with them by making your first post.

    In the space below share your name, how long you've been with your organization, and the role you play. Please also include one goal you're planning to accomplish as a result of this program. Remember to click the POST COMMENT button. After you've told us something about yourself, read about the other members of your cohort and try to find one thing you have in common.

Supply Chain Orchestration

• Alignment and Collaboration

  • Watch: The Seamless Supply Chain

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    It is easy to suggest that to be effective, supply chains must be “seamless,” having all parts work together as smoothly as possible. This has given rise to the current imperative for supply chains to become more aligned and collaborative. As we make progress in this direction, we then can strive for achievement of an even loftier objective, supply chain orchestration.

    In this first video, John Langley provides some definitions and perspectives on the terms alignment and collaboration, and offers suggestions on how they can contribute to the efficiency of supply chains. Use the attached document “Alignment & Collaboration” to help you keep track of the concepts used in the video.

    If you talk to 100 supply chain leaders about the definitions of the terms alignment and collaboration, it is likely that you will get 100 different answers. Most of the time, these terms will be framed within one or more of three contexts:

    • Alignment and collaboration within the supply chain
    • Alignment and collaboration between the supply chain and the broader organization
    • Alignment and collaboration with supply chain partners such as customers, suppliers, and providers of logistics and supply chain services.

    As you watch the video, consider the implications of greater alignment and collaboration for your supply chain and for your organization as a whole.

  • Reflect: An Action Step

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    Building greater alignment and collaboration into your organization's supply chain is essential if you want to remain competitive. The question is, how can you build this into your supply chain?

    Based on the video you watched in the previous activity, take a moment to articulate one step that you could take this week to improve the level of alignment and collaboration within your supply chain. This does not need to be a huge goal; think of something small, specific, and measurable. 

    Keep in mind that your reflections are private and will only be seen by you. This type of purposeful reflection will get us into the habit of relating our learning to valuable application opportunities.

  • Watch: The Three Legged Stool

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    Greater alignment and collaboration within your supply chain organization will not happen on its own. It takes a concerted effort from a wide array of stakeholders over a sustained period of time. Moreover, it is important to utilize your organization's resources of people, processes, and technology, in concert with one another, to support the effort.

    You can think of people, processes, and technology as the legs of a three-legged stool, supporting your efforts to build greater alignment and collaboration within your firm. The stool cannot stand without the support of all three legs.

  • Reflect: People, Processes and Technology

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    Take a moment to apply the video you just watched to your day-to-day work and document your thoughts in the private space below.

    First, identify the people, the processes, and the technology involved in one area of your workstream.

    Then, quickly rate the level of alignment and collaboration between the people, processes, and technology in this workstream, from A to F.

    Finally, think about how you would like to improve the interplay between these areas. You do not need to write full sentences for this exercise, simply get some ideas down and let them germinate.

  • Watch: The Maturity Model

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    Next, John Langley introduces you to the Maturity Model, which will help you define your current level of alignment and collaboration across the supply chain. As you watch, consider your organization's level of maturity in aligning people, processes, and technology. Where is your organization on this matrix?

    Then, download and review the matrix attached below. This document may be a helpful tool to continually assess your organization in each area. Where is your department currently functioning on the matrix? Where would you like to be?

  • Discussion: Your Organizational Maturity

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    As you reviewed the Maturity Model in the previous activity, how did you rate your supply chain organization? Share your thoughts with your colleagues and learn about their ideas.

    Pick one area of the Maturity Model (People or Processes or Technology) and answer these questions:

    • Is your organization Traditional, Progressive, or Leading in this single area?
    • What is the impact of this level of functioning on your supply chain?
    • What is one step that people in your organization can take to improve in this area?

    Once you post your thoughts, read and respond to at least one of your colleagues' posts. Get some dialogue going that will spur creative thinking and organizational learning.

• Critical Success Factors

  • Read: Keys to Success

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    Collaboration with outside partners across the supply chain is not easy. In fact, according to research done by McKinsey, most collaborative efforts fail.

    However, the potential benefits of a successful collaboration are enormous. So, how do you develop successful collaboration with a key partner? Read this document to learn recommended steps.

     

    6 Steps to Successful Supply Chain Collaboration

    Louid Benavides, Verda De Eskinazis, and Daniel Swan

    Supply chain collaboration is an important topic in contemporary supply chain research because firms that successfully collaborate across the chain see drastic reductions in inventories coupled with improvements in speed, service levels, and customer satisfaction. The promise of this kind of performance is especially attractive to the consumer packaged goods industry because of ever-increasing price competition. However, a 2010 survey of CPG executives conducted by McKinsey, Nielson, and the Grocery Manufacturers Association, noted that only 20% of these kinds of collaborations delivered significant results. Failure rates of this kind not only represent a lost opportunity to create additional value for the firm; these results also make companies less likely to seek out collaborative relationships in the future.

    WHY COLLABORATION IS HARD

    There are a variety of reasons why collaboration is difficult. In some instances, firms lack the support of senior management to drive the collaboration and properly disseminate the vision for this initiative, or to provide necessary resources to implement the new course of action. Consequently, the initiative dies in the C-suite before it is implemented. Firm-level issues like these are challenging to address. Now imagine trying to align separate organizations around a common vision! In order to make sure a collaborative effort is effective, both organizations need to highlight differences in organizational design/culture and overcome any potential trust issues between the companies so that both firms can work together. Finally, it is common for the incentive structures in place at each organization to be wildly different, which makes it difficult for even enthusiastic and committed professionals to meet their targets. For example, a manufacturer may be looking to increase market share by improving its products, while a retailer may be looking to increase margins or sales within the current product mix. Consequently, the retailer and manufacturer may be looking for very different outcomes from the collaboration. Additionally, there may also be a substantial power differential between the partners. Manufacturers generally have a small number of relationships with key retailers, while retailers may have a large number of relationships with a wide array of suppliers.

    MAKING THE RIGHT CHOICES

    CPG firms can greatly increase the odds of successful collaboration by taking the following 6 steps:

    1. Collaborate in areas where you have solid footing.

    Many firms want to collaborate in areas where they are weak in the mistaken belief that the partner will fill a much-needed gap. The most successful collaborations occur by capitalizing on an organization’s strengths. For example, a manufacturer seeking to collaborate with a retailer in order to improve its forecasting should already have robust in-house analytics capabilities in order to capitalize on this new data. Moreover, the manufacturer should have excess capacity in case this new demand forecasting calls for a rapid increase in production. It is vital to have the right supporting infrastructure in place before the collaboration occurs. Does senior management support this collaboration? Does the firm have the IT capabilities to follow through on the new demands placed on the analytics system?

    2. Turn win-lose situations into win-win opportunities with the right benefit-sharing model.

    Some collaborative relationships offer an equal benefit to both parties, while other efforts may give one party a large benefit and the other firm a smaller benefit. For example, a retailer and a manufacturer developed a partnership to reduce overall logistics costs for both firms by eliminating the manufacturer’s distribution center and using the retailer’s distribution network as the backbone of this logistics capability. However, this arrangement placed a much greater burden on the retailer who had to carry a much larger fraction of the logistics costs. Consequently, the retailer had difficulty gaining the support of managers for this partnership. Instead of avoiding these types of asymmetrical arrangements, firms should work to create a more sophisticated benefit-sharing model, which more “fairly” distributes the benefits between the firms. The partnership could include weighted distributions of cost reductions, discounts on price increases, or other compensatory strategies between the firms. This kind of benefit-sharing also helps organizations bridge the gap between strategic priorities. For example, a manufacturer interested in growth joined a supply chain waste reduction collaboration with a retailer when both parties agreed to deposit a portion of the savings into a joint pool, which would then be used to generate new sales.

    3. Select partners based on capability, strategic goals, and value potential.

    Selecting the biggest partner may not be your best option. Instead, look for the value of the strategic fit. In fact, you may find a smaller partner more receptive to a collaboration of this kind, because a larger partner may be managing many partners concurrently. Assess your current customers and suppliers across a range of criteria including:

    • The potential value that this collaboration will bring to both parties.
    • The level of strategic interest both partners have in the proposed partnership
    • The level of infrastructure and processes in place to ensure that the collaboration will have the requisite backend support

    4. Invest in the right infrastructure and people.

    In our study, retailers and manufacturers cited a lack of resources as one of the top reasons why an initiative failed. Many firms underestimate the resources required to make these kinds of collaborations successful. Even “simple” collaborations between two firms will turn out to be more complicated than a similar initiative carried out in-house. Team members will need to navigate differences in culture, organizational structure, language/terminology, and functional role. Finally, it is important to consider where the partnership “lives”. A small informal entrepreneurial venture between two managers could fail because senior executives fail to see the growth potential of such an opportunity. Similarly, a strategic partnership launched in the C-suite may fizzle because managers on the line see it as another short-lived pet project put together by senior executives.

    5. Establish a joint performance-management system.

    Effective performance management systems help to make certain that long-term projects remain fruitful. It is essential that both parties use the same system so that they can accurately measure the results of the initiative. However, deciding on the “right” metrics can be difficult. Given the collaborative nature of partnerships, you may need to compromise. For example, in a collaboration designed to reduce logistics costs, the partners may need to decide between a pallet configuration that is designed to optimize the retailer’s restocking needs or a layout that optimizes truck fill. The way to overcome challenges like this is to pick the smallest number of metrics necessary to give an accurate assessment of the performance of the initiative and then closely monitor the progress in joint review and problem-solving sessions. The value of a joint performance-management system will come from the robust dialogue that you have with your partner.

    6. Collaborate for the long-term.

    Successful collaboration requires long-term effort. Both firms need to recognize and embrace this reality and build a long-term commitment into their mindsets and plans. This is not to say that each company should not seek out and celebrate early wins; these successes are important because they demonstrate the potential value of the partnership and build momentum for the future. However, successful long-term collaborations yield dividends such as a greater understanding of one another’s capabilities and, greater alignment of processes/procedures, which may uncover new untapped value over time.

    POTENTIALLY HUGE PAYBACK

    Successful supply chain collaboration is neither easy nor fast. However, it is worth the time and effort. We found that successful CPG collaborations involving 2 to 3 separate initiatives had a return of 5-11% within the targeted category through a combination of improved sales and reduced costs. So, let’s discuss the impact on the consumer packaged goods industry as a whole. Our models indicate that if a grocery retailer could collaborate in this manner with the top three brands in all of the top 25 categories it could receive up to a four percent increase in EBIT (earnings before net interest and tax) margin. For a manufacturer, the same type of collaboration with the top 10 retailers could increase margins by 5 percentage points. If you play this scenario out over the entire American CPG sector this could translate into $8-12 billion, which is currently comparable to two years of growth in the industry.

    Adapted From, CSCMP’s Supply Chain Quarterly, Q2, 2012

  • Reflect: Application of One Step

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    The previous reading, 6 Steps to Successful Supply Chain Collaboration, recommends that you:

    1. Collaborate in areas where you have solid footing.
    2. Turn win-lose situations into win-win opportunities with the right benefit-sharing model.
    3. Select business partners based on capability, strategic goals, and value potential.
    4. Invest in the right infrastructure and people.
    5. Establish a joint performance management system.
    6. Collaborate for the long-term.

    Reflect on one of the steps and write down your thoughts here:

    • Which one of the areas most resonates with you? Why?
    • How will you harness this principle to improve collaboration within your team?

  • Read: Effective Collaboration Drives Impact

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    At the end of the day, any collaboration that you do with another firm must drive tangible business results. The following article by Carolyn Dewar, Scott Keller, Johanne Lavoie, and Leigh Weiss from McKinsey outlines four key considerations to building effective collaboration in the future.

  • Watch: Penske Logistics Case Study

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    It is easy to talk about alignment and collaboration within the supply chain, but what does excellent alignment and collaboration actually look and feel like in an organization?

    This video outlines how Ford Motor Company improved its level of alignment and collaboration in order to boost service levels for the 175,000 different parts coming from 2,500 different suppliers to be delivered to 2,900 European car dealerships.

    As you watch this video, consider how Ford and Penske needed to align and collaborate to build this successful partnership.  

  • Discuss: One Opportunity

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    In the previous video, you saw how Ford Motor Company and Penske Logistics worked together to build a best-in-class spare parts supply network, which reduced transportation costs by 20% while simultaneously improving the service levels for customers.

    With your cohort, brainstorm how this case study could be applied to your industries and markets.

    Identify one area within your sphere of influence where you can seek to develop greater alignment and collaboration within your supply chain.

    Once you post your response, read and respond to at least one of your colleagues. Aim to develop a conversation that you might not normally be able to have across functions or geographic regions.

• Playing the Role of the Conductor

  • Watch: Supply Chain Orchestration

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    Have you ever seen a highly skilled orchestra perform? It is a remarkable experience.

    Over 100 different musicians playing different instruments, at different times and tempos, coordinate their efforts in real-time to produce breathtaking sound. Meanwhile, the conductor works with the musicians to make subtle shifts in their timing, volume, or style to enhance the experience for the audience. There is a reason why this art form continues to resonate with audiences around the world.

    Similarly, a beautifully orchestrated supply chain is a wonder of timing, subtle shifts, and remarkable collaboration. In a sense, a supply chain of this kind will bring audiences to their feet for a resounding encore, in other words, bring in and keep customers, which is the competitive advantage you seek.

    Take a moment to watch Steve Tracey share his thoughts on a conceptual model, with the application of a real company, that is sure to help improve your level of supply chain orchestration.

  • Read: Capitalizing on Synergies

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    In 2013, Walgreens developed a partnership with AmerisourceBergen, a pharmaceutical services company, to combine their respective purchasing power to buy both generic and branded drugs around the world.

    This partnership would make the two companies the largest purchaser of generic drugs, and allow both firms to negotiate more effectively with suppliers in Asia. In addition to providing this purchasing power, analysts believed that the partnership would bolster both firms' competitive position with the US Government, which is the largest payer of prescription drugs. Most industry experts believed that as the Affordable Care Act took hold, the US Government's role as a purchaser of healthcare products would grow over time.

    Finally, the partnership would also allow both firms to work together to improve the response times and service levels within Walgreens. AmerisourceBergen would be able to resupply specialized treatments for cancer and other expensive injectable drugs on a daily, rather than a weekly basis. This kind of on-demand supply network was expected to give Walgreens a competitive advantage over its rivals who resupplied these products on a weekly basis. 

    It is important to consider the implications of this kind of close partnership between Walgreens and AmerisourceBergen. Consider what levels of alignment and collaboration these firms would need to have in order to seamlessly execute these value-adding activities.

  • Consider: Potential Areas for Supply Chain Orchestration

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    Consider how you might work to improve the level of supply chain orchestration around each of the following supply chain challenges:

    Customer Returns: Many growing companies have obsolete systems for inventory management and customer returns. These legacy systems have a way of draining a firm's free cash and eating into profits. What makes these systems so challenging is that they fly under the firm's radar. Returns are not usually thought of as essential to a company's supply chain operations. However, addressing this challenge is a smart way to capture value within the supply chain to improve your firm's bottom line. How is your organization managing customer returns?

    Spreadsheet Reporting: For most companies, analytics are synonymous with reporting. Despite thirty years of innovation within the supply chain, the most commonly used structure for planning is a spreadsheet. But companies cannot effectively model on a spreadsheet the trade-offs between growth, profitability, and supply chain cycles such as procure to pay, inventory turns, and business operations complexity. As the complexity of supply chain operations increases, most companies are unable to use supply chain analytics to improve operating margins and inventory cycles. How does your firm coordinate its supply chain planning? Are you using a spreadsheet? Are you using analytics effectively? Why or why not?

    Demand-Driven vs. Market-Driven Networks: What is the difference between a market-driven and a demand-driven supply chain network? A demand-driven network senses demand with minimal latency to drive a near-time or real-time response to demand shaping and demand translation. In this network, the bullwhip effect is minimized using channel data. 

    Contrast this system with a market-driven network, which takes the demand-driven process one step further. In a market-driven network, market data is used to orchestrate trade-offs between buy-side and sell-side markets, or channel to supplier trade-offs. These models use advanced analytics to orchestrate demand and supply decisions based upon an analysis of profitability and a mix or volume against the business strategy. Is your firm market-driven or demand-driven, or something else entirely? What would it take for your firm to become market-driven across your supply chain?

  • Reflect: Your Organization

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    You just reviewed three common areas where contemporary supply chains could become more integrated. Reflect on one of the following areas: customer returns, spreadsheet reporting, or demand-driven vs. market-driven networks:

    • How is your firm currently managing this area?
    • How would you like to improve in the future?
    • What is one step you can take today to move your idea forward?

  • Watch: Bridging the Gap

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    Can you accurately define your current level of performance in a given task or area of your supply chain? How do your customers and suppliers rate your products and services? Are these respective measurements aligned? Why or why not?

    In the video below, Steve Tracey will further discuss the importance of continuous assessment and alignment with suppliers and customers within your supply chain.

  • Discuss: Revisit Your One Opportunity

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    How might you apply the powerful methodology that Steve Tracey described to help you improve your supply chain operations in the future?

    1. Think back to the "One Opportunity" that you posted in the final activity of the previous lesson and summarize it briefly. 
    2. What might the optimal state of functioning look like in this area?
    3. If you were able to move towards the optimal state, what is the potential opportunity for your organization?

    Once you post your response, read and respond to at least one other post from a colleague.

  • Watch: Creating a Roadmap

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    How can you use data to help you develop a roadmap for change? Steve Tracey provides some recommendations for how to move from your actual supply chain performance to an optimal level of performance.

• Change Leadership and Moving Forward

  • Watch: The Strategic Plan

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    In the video, Steve Tracey discusses how change management is a journey that requires an itinerary, namely, our strategic plan. He also provides another clear example of supply chain orchestration in action.

    As you watch, consider how you will go about identifying actual performance vs. optimal performance and aligning this definition with the same definition your client/customer uses.

    How can the example Steve Tracey uses help you see the possibilities for your organization?

  • Read: Connecting Behaviors

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    Researchers at Deloitte have discovered a disconnect between senior managers in supply chain and their subordinates. The attached article sheds some light on this gap and offers insight into how to bridge this for the future. 

    As you read this article, consider whether your organization has this gap. If so, how can you begin to close this divide in order to orchestrate change in your supply chain?

  • Watch: Kotter's Model

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    How can you develop a robust change initiative to improve your supply chain? Steve Tracey explains how John Kotter's change management model can help your organization reach new levels of performance.

  • Discuss: One Improvement

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    Take a moment to think about one small area of your supply chain that you have some influence over, that you would like to improve. Use the following questions to share your thoughts with your cohort.

    1. What is one area of your supply chain that you would like to improve?
    2. How could this potential improvement help your supply chain?
    3. How will you determine your current level of functioning and an optimal level of functioning?

    Once you post your response, read and respond to at least one of your colleagues.

  • Watch: Do Not Wait

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    Change is difficult. Leading change can be more difficult because the leader must keep people moving forward despite setbacks and conflicting priorities. Steve Tracey offers some advice for making a change in your team or department.

  • Read: Thank You!

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    For more information on how your organization can unleash the power of active, collaborative, sociocultural learning by running internal cohorts, please contact us at 212-213-2828 or GrowSmarter@corpu.com

• Capstone

  • Attend: Live Event: Orchestration of Your Supply Chain Organization

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    Join us for our capstone event as we close out this sprint. Together with our Expert Faculty and fellow cohort members, we will connect in real-time for an hour-long interactive webinar session to collaborate on:

    • Questions you may have or clarification you may need
    • Best practice tools for assessing supply chain performance and change readiness
    • Opportunities that exist to radically improve your organization's supply chain performance