Update Grainger Center for Supply Chain Management

Supply Chain

Fall 2009

INSIDE

2 Meet the Class of 2011 5 Supply Chain Management Students Elected to Key Leadership Positions 6 The Grainger Center Difference 7 Two New Executive Advisory Board Members 8 2009 Executive Advisory Board Meeting 9 Supply Chain Frontiers: Nontraditional Applications of Supply Chain Principles 10 Management of Risk and Uncertainty in Global Supply Chains 11 Reports from the Field: Summer Internships 2009 13 Kelly Ketchum Memorial Alumni Scholarship and Fundraising Update 15 Superior Customer Service through Supply Chain Management at Grainger-Mexico 16 Fall Site Visit: Kraft Foods/Oscar Mayer 17 Supply Chain Management Undergraduate Specialization 18 Grainger Center Alumni...Where Are They Now? Scott Pollyea, MBA 2004 20 2009 Placement Report

The team, pictured here: Jennie Meresak, Chris Gajdostik, Mark Adkins, Ajay Balasubramaniam, Pete Lukszys, Amber Sleichter, and Samy Affo. The Grainger Center’s director of applied projects and senior lecturer in marketing, Pete Lukszys, was key in coordinating Wisconsin’s participation and accompanying the team as faculty representative.

A team of Grainger Center MBA students brought home a second-place trophy and a $2,000 prize in this year’s Sam M. Walton College of Business International Graduate Logistics Case Competition held at the University of Arkansas. The Wisconsin team placed second in the 11-team competition (and first among U.S. teams), which included some tough competition from Penn State, Michigan State, the University of Arkansas, Brigham Young University, and the University of Minnesota, among others. The prestigious event brings together graduate students from the world’s top supply chain management and logistics programs and includes tremendous networking opportunities. Teams analyzed a case study about Braiform, a company that partners with retailers and garment manufacturers to provide retail garment hanger solutions. The team recommended ways to sustainably support growth of the company’s hanger reuse program and presented at the Sam’s Club corporate headquarters in Bentonville, Arkansas, to a panel of executives from Procter & Gamble, Wal-Mart, General Mills, Unilever, FedEx Freight, Pfizer Consumer Healthcare, J.B Hunt Transport, and many more. The Wisconsin team’s solution involved relocating one of Braiform’s U.S. distribution centers to provide transportation savings and leverage intermodal transportation. Darmstadt University of Technology (Germany) won the competition, and third place went to a team from Chalmers University of Technology (Göteborg, Sweden).

SUCCESS in International Case Competition

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ssMark adkinsAfter graduating from the University of Memphis with a bachelor’s degree in logistics and supply chain management, Mark worked at Cleveland Golf as a buyer/

planner and as a master scheduler. He was responsible for the scheduling of golf club assembly and ensuring optimal inventory levels. After his time at Cleveland Golf, he took a position at APM Terminals in Los Angeles, where he was in operations management, supervising the loading and unloading of container vessels. He was responsible for supervising longshore labor, interacting with vessel crew, and coordinating with terminal management to ensure the operation ran smoothly. Most recently, Mark worked for World Class Logistics Consulting as a project manager, where he was responsible for projects addressing various supply chain issues for different companies. Mark hopes to gain a complete understanding of supply chain management and apply his knowledge in industry to become a leader in supply chain management.

kwaMe adu-BonnahKwame has seven years of cross-cultural industry experience with progressive management roles. After graduating with a mechanical

engineering degree from the Kwame Nk-rumah University of science and technology in Ghana, Kwame worked for two and a half years in Ghana before coming to the United States to earn a master’s degree in industrial engineering and operations research at the University of Massachusetts, Amherst. After

graduation, Kwame joined Chemdesign Corporation as maintenance manager in charge of maintenance operations for four production plants and the associated auxiliary buildings. He managed the maintenance personnel, maintenance service contracts, and equipment spare parts, and he planned scheduled and controlled maintenance jobs. Kwame also worked on cross-functional teams, including quality control, process hazard assessment, and safety teams. In his next role as principal project manager, Kwame negotiated, ordered, and tracked capital equipment while working closely with the purchasing department; managed the $2 million maintenance and engineering operations budget with reporting responsibilities to upper management; worked in several cross-functional teams; served as engineering liaison between Chemdesign and its clients; and negotiated and managed several service contracts and jobs. In December 2006, Kwame was selected to work with the upper management team at Chemdesign that developed its performance matrices and carved a new culture for the company. Kwame is interested in global strategic sourcing and contracts negotiations and optimization of supply chain operations.

Maria GaBriela alBornozAs a manufacturing engineering intern at a Baker Oil Tools-Baker Hughes manufacturing facility in Maracaibo,

Venezuela, Maria was responsible for analyzing manufacturing variances to improve manufacturing processes. As a production intern, she was responsible for designing and implementing a methodology that allowed shop floor personnel to post production times to SAP at every stage of the manufacturing process to improve planning and production coordination. She identified root causes of

delays in workloads as a way to reduce work in process and to adjust routing standard times to real times. She developed and established a productivity metric that allows management to measure plant performance. After two years in manufacturing, Maria was a price and quote analyst in the operations district of Baker Oil Tools-Baker Hughes. In this role, she was responsible for controlling the initial and final stages of all tenders, proposals, and quotations through SAP, and she updated marketing statistics of all companies/ customers to ensure responsiveness and assure market share of product lines.

Maria earned a bachelor’s degree in industrial engineering from the University of Zulia, Venezuela, in 2005. She is particularly interested in inventory management and distribution.

TiM BreiTaGTim joins the Grainger Center after working for five years for Progressive Insurance in San Jose, California. He held a variety of roles, starting as a claims representative

and leaving the company as a managed repair representative. He was responsible for monitoring vehicle repairs completed through Progressive’s Direct Repair shops and other repair facilities in the East Bay. This entailed monitoring vendor relations, negotiating repairs, completing quality assurance inspections of repair quality, confirming adherence to company and industry standards by vendor shops, and owning the results of customer experience and satisfaction surveys. Tim was selected to be a member of Progressive’s Accelerated Leadership program, an 18-month rotational program to identify and train future management, which allowed him to take on several leadership roles within the organization and perform management

duties with his direct reports and the branch as a whole.

Tim graduated from the University of Wisconsin-Madison in 2003 with a degree in consumer science with an emphasis in consumer affairs in business. Shortly after graduating, he moved to England and spent seven months working in London and traveling as much as possible around Europe. Outside of class, Tim enjoys mountain biking, golf, and reading.

Phil FriTzPhil has five years of work experience in outside sales and global logistics management. While working in the New York City office of CH Robinson Worldwide,

Phil was responsible for coordinating international multimodal transportation and logistics services to global clients. He marketed the company to senior-level decision makers who managed inbound and outbound enterprisewide supply chains. Phil generated new revenue by qualifying leads, making initial contact, analyzing demand/supply side logistics functions, developing and presenting proposals, assembling customer-specific operations teams, and overseeing project integration while managing all client-facing relationships. Phil also worked to establish a domestic outside sales team at the Philadelphia CH Robinson office, focusing his efforts on Fortune 500 business prospects. His most recent project involved managing the massive rollout of a best-selling Harry Potter book.

Prior to his work with CH Robinson, Phil pursued military officer training at the Maritime College in New York City, where he completed his master’s degree in international transportation management. He has also sailed commercially with Maersk Lines Limited and the Military Sealift Command

orientation2009In addition to the usual debriefing, Grainger Center students enjoyed a panel discussion with alumni about what to expect during their two years in the program. The panel gave advice on adjusting to graduate school, managing the workload, staying organized, and landing internships.

First- and second-year supply chain management MBAs met officially for the first time on a cruise of Lake Mendota.

And, as always, students, faculty, and staff met at the home of Executive Director Jack Nevin for an evening of great food and conversation.

during Operation Iraqi Freedom. Phil earned his bachelor’s degree from the Rutgers Business School and, upon graduation, went on to establish an investment and insurance brokerage franchise in the Seattle area, proudly serving a client base of career military officers and senior enlisted personnel. Phil’s primary area of interest is in sustainable supply chain management. Phil is a nationally competitive sailor and volunteers at a local community-supported organic farm.

sTeve harrisSteve joins the Center with 13 years of professional experience in the technology, financial services, and government sectors. He started his career in international

trade with the U.S. Department of Commerce, then shifted into the private sector and spent seven years as an industry analyst at IDC, a leading technology market research firm, where he managed the firm’s Internet telecommunications research area and built a new research program from scratch to become the company’s most profitable telecom program within three years. In 2005, Steve joined Discover Card, where he was hired to build and manage a research and analysis unit and helped teams incorporate better information into the decision-making process concerning new product launches, business process streamlining, and technology deployments.

Steve earned a bachelor’s degree in economics and international relations from the University of Wisconsin-Madison and a master’s degree in international relations with a concentration in international business diplomacy from Georgetown University. Steve lived and worked in Germany and enjoys international travel.>

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The Wisconsin MBA is designed to put professionals out in front in their chosen fields. It is composed of outstanding programs in highly focused career specializations in key areas such as supply chain management. The program is about knowledge creation and providing transforming educational experiences. It offers real focus and real success to students.

The Grainger Center for Supply Chain Management at the Wisconsin School of Business is one of the few endowed, university-based centers specializing in supply chain management in the United States. Its unique curriculum is cross-functional and takes an integrated process view of supply chains, including marketing, sourcing, logistics, operations, and customer service. It is a personalized and industry-focused program supported by companies known for supply chain excellence. Students connect with and learn from real-world supply chain leaders and are part of a strong, close-knit community.

In addition to its MBA program, the Center also offers an undergraduate specialization and assists in the efforts of faculty research in the field.

The Center was established in August 1991, with a generous gift from The Grainger Foundation of Lake Forest, Illinois. The gift was made to recognize the increasing importance of supply chain management and the industry’s growing need for leaders with advanced education in the area. The contribution by The Grainger Foundation allows the Wisconsin School of Business to fulfill a significant need in graduate business education.

During the summer of 1992, the Grainger Center for Distribution Management became operational. The first class of students graduated from the program in the spring of 1994. In July 1999, it was renamed the Grainger Center for Supply Chain Management. Since its genesis, the Center has graduated 133 students who have gone on to become business leaders across the industry, in firms large and small.

Connection, Leadership, Innovation, and Community: four Values That Define the Wisconsin MBA

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keMllen leeKemllen graduated cum laude from Hunter College with a BS degree in physical education with an emphasis on health and nutrition. Upon graduation, she joined the Brearley School faculty, where she honed her

team-building and project management skills by developing initiatives that resulted in improved working conditions for the staff members of the school and greater community service opportunities for the students. Throughout her 11-year tenure, Kemllen’s passion for health and community continued to grow, and, in 2007, she began to work with Hawthorne Valley Farms, where she helped generate new business and increase revenue by developing a successful marketing strategy that targeted the Hispanic community. Later that year, during her teaching sabbatical, Kemllen was offered a brand management and food production internship with Revolution Foods in northern California, where she promoted the company’s new branded product line to store marketing strategists and team leaders of Whole Foods’ northern California region. Through these experiences, Kemllen became interested in how the supply chain and product management can improve a community’s access to healthier products. Kemllen is looking forward to leveraging her experience in teamwork and education with the skills she acquires from the Grainger Center to lead supply chain projects in the food and health industry.

Jennie MeresakJennie has seven years of hands-on experience in marketing, operations, product development, and sales management in the consumer products and technology

industries. For the past five years, Jennie held the position of director of marketing and operations, where she was responsible for the marketing and operations functions of a start-up multimedia children’s brand, including product development, sales and channel management, sourcing, and production. She led development of two award-winning products from concept inception through market launch and managed the profitable migration of manufacturing from Michigan to China. Jennie studied finance and biology at Washington University in Saint Louis and graduated with a BSBA in 2002. She would like to put her skills and background in science to use in the biotech, medical device, or pharmaceutical industries, preferably in a global capacity. She lived and worked in Edinburgh and has traveled widely. Outside of work and school, Jennie enjoys traveling, playing tennis, riding her bike, and cheering on the St. Louis Cardinals.

kyle nakaTsuJiKyle joins the Center after completing his first year in the University of Wisconsin Law School as a part of the JD/MBA program. In the Law School, Kyle was exposed to the

foundations of the legal system, including contract law, property law, and trial practice, and through these studies became interested in the interrelation between law and business. The quest to understand the dynamics of this complicated relationship, as well as the spectrum of business management, was what led Kyle to the Grainger Center.

Prior to law school, Kyle received a BS degree in political science from the University of Wisconsin-Oshkosh. As an undergraduate, he was a captain of the university’s football and track teams and also played football for a year at

UW-Madison. This passion for athletics and competition remains a large part of his life, and Kyle still enjoys many sports, including football, golf, and boxing.

yuxinG (hesTer) wanGHester has three years of experience in international business and manufacturing, working as Blue Ridge Home Fashions’ chief order coordinator for North American accounts and the

primary contact person for China factories. Hester was responsible for sourcing packaging materials, coordinating new orders, and monitoring production and shipping status. She ensured smooth deliveries of more than $80 million by diligent communication with three factories to mitigate any problems related to order manufacturing. As the liaison between the Los Angeles and China facilities, Hester successfully handled various foreign customer visits and third-party factory audits and evaluations and helped set up supply chain operation systems such as a product labeling system and an order placing and tracking system, and she participated in a warehouse space allocation project.

Hester earned a bachelor’s degree in business English from the Shanghai Institute of Foreign Trade, a well-known institute in China that specializes in international business. Hester earned a Best Student Scholarship in every academic year, developed a great interest in import and export practice, and laid a solid foundation for her subsequent engagement in international business.

Supply Chain Students Elected to Key Leadership Positions in the Wisconsin MBAContinuing the Grainger Center’s tradition of leadership in the Wisconsin MBA, three students were elected by their peers to hold key leadership positions in the program.

Amber Sleichter was elected as the Technology Communications Chair of the Graduate Business Association (GBA) for 2009. In this role, Amber manages all external communication from the GBA and the MBA student organizations to the faculty, staff, and student body. She also acts as the Web master for the Grainger Squire, a weekly Internet publication that has become essential to the cohesion of the student community. Kemllen Lee was elected as the President of the Graduate Business Association for 2010. In this role, Kemllen oversees the activities of the GBA, supports the MBA student organizations, and maintains regular communication with the administration of the Wisconsin School of Business in an effort to continuously improve the unity among the student body, faculty, staff, and administration.

Jennie Meresak was elected the MBA Class of 2011 student representative on the Master’s Committee for 2009-2011. The Master’s Committee is comprised of faculty, staff, and students and helps make important decisions regarding program curriculum. In this role, Jennie will be able to share the ideas and opinions of her class on academic matters related to the MBA program such as curriculum, admissions, student services, placement and assessment.

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DIffErEnCEThe Center offers a unique promise of career and leadership development for:

» individuals who are already working in supply chain management and want the best training and connections possible in order to lead

» individuals who want to manage the whole business (not just one piece such as marketing or logistics)

» individuals looking for a career path where they can leverage both their analytical capabilities and their interest in relationships and systems

This promise is fulfilled through delivering results in four key areas: an integrated learning environment, industry partnerships, personalized attention in a close community, and 100% placement.

Integrated Learning EnvironmentThe curriculum is cross-functional, applied, and collaborative, allowing students to learn about supply chain management in an integrated business framework from renowned faculty with expertise in supply chain management and other crucial business disciplines.

Core supply chain courses include:• Strategic Global Sourcing• Logistics Management• Operations Research• Marketing Channels• Enterprise Systems and Supply Chain

Management• Seminar in Supply Chain Management

The Grainger Center

Electives may be chosen from multiple disciplines, including finance, marketing, management, operations, engineering, sustainability, and entreneurship.

The Center also offers an extensive applied learning program.

Executive speaker series: Top business leaders visit campus regularly to share their real-world experience.

Global experience: MBA students have opportunities to travel abroad to meet with companies and learn about their global operations. In January 2009, 14 students traveled to Brazil.

Site visits: Students learn about supply chain practices firsthand by visiting various U.S. locations. Center students toured the facilities of Johnson Controls in Milwaukee last spring and Kraft Foods/Oscar Mayer in Madison this fall (see page 16.)

AMR Research Briefings: Senior executive analysts from AMR Research draw on their deep industry experience to share success stories and challenges in presentations about the latest market findings and analysis on supply chain management issues, trends, and developments. AMR Research is the #1 advisory firm focused on the intersection of business processes with supply chain management and enterprise technologies.

Industry PartnershipsThe Center has deep ties to industry. Its extensive network of corporate partners provides real-world perspective that enhances the curriculum and applied learning program, and provides invaluable career guidance to students.

Close CommunityStudents experience the best of two worlds: the resources of a large, world-class university and hands-on, personalized attention made possible by the in-depth resources offered by the Center. Each student receives personalized career and academic advising. Students are connected—directly and personally—with an extensive network of industry executives, alumni, corporate partners, and faculty. Students receive personalized guidance from this network throughout their time in the Wisconsin MBA program.

With an entering class each year of between 10 and 20 students, supply chain management MBA students form close ties to each other and to the faculty and alumni dedicated to the supply chain management program. The Center offers generous financial aid packages to qualified students, including fellowships, assistantships, and scholarships.

100% PlacementSupply chain management talent is in high demand, as the Center’s record of 100% placement for summer internships and full-time employment reflects. (See placement report on back cover) Our graduates achieve quickly and notably. Average starting salaries are consistently the highest among peer schools, ranging from $80,000 to $110,000. A few facts to consider about the value of the program: Center students are funded for at least one year of their MBA experience, and they typically double their pre-MBA salary upon graduation.

The Executive Advisory Board is comprised of senior executives at leading firms that are renowned for supply chain management excellence. Board members provide strategic and curricular guidance, participate in applied learning programs, and provide placement opportunities for students.

Executive Advisory Board

Karl BraitbergVice President, Demand Management, Planning & Customer Value Cisco Systems, Inc.

John KennyPresidentFreeFlow

Steve LoehrVice President, Client EnablementIBM Global Operations, Integrated Supply Chain

Kevin O’MarahChief Strategy OfficerAMR Research

Thomas F. Pyle, Jr.ChairmanThe Pyle Group

Doug RafteryFormer Vice President, Customer Business DevelopmentProcter & Gamble

Stu ReedSenior Vice President and President, Home ServicesSears Holdings Corporation

Jim RyanChairman, President, and Chief Executive OfficerW.W. Grainger, Inc.

Jim ShumanSenior Vice President, Materials ManagementGenzyme Corporation

Brian R. SmithDirector, Logistics and Indirect ProcurementHarley-Davidson Motor Company

Eric SmithVice President, Supply ChainEmerson Electric Corporation, InSinkErator Division

Gray WilliamsVice President, Worldwide Supply ChainLogitech

Carolyn A. WoznickiVice President, Global ProcurementJohnson Controls, Inc.

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The Grainger Center is pleased to announce the addition of Eric Smith and Kevin o’Marah to the Executive Advisory Board.

Kevin O’Marah is chief strategy officer for AMR Research, a firm that provides subscription advisory services and peer networking opportunities to supply chain, sustainability, and IT executives in the consumer products, life sciences, manufacturing, and retail sectors. It is the world’s leading independent research firm focused on the global supply chain and its supporting technologies. Kevin has led AMR’s

global supply chain research since 2000, publishing seminal work on sustainability, product innovation, and the AMR Research Supply Chain Top 25. Prior to joining AMR Research, Kevin worked on supply chain projects in a variety of industries, including telecommunications, semiconductors, and chemicals. As a vice president at Oracle Corporation, he focused on supply chain and product data management strategy. He was previously a strategy consultant in London, Washington, DC, and Warsaw, Poland. A graduate of Boston College, Oxford University, and Stanford Business School, Kevin speaks at industry events and has been featured in business publications including the Financial Times, Fortune, BusinessWeek, the Wall Street Journal, CNBC Squawk Box, and Bloomberg.

Eric Smith is a 1998 alumnus of the Grainger Center and is vice president of supply chain for the InSinkErator Division of Emerson Electric, a worldwide leader in power conversion and wireless technology for the industrial, residential, health care, and IT markets. Eric has responsibility for the organization’s global procurement, logistics, order fulfillment, materials planning, and lean supply chain activities. His responsibilities

encompass seven worldwide sites and managing a staff of more than 80 individuals. Prior to joining Emerson in 2008, he served as director of supply chain operations for Placon Corporation. He has over 20 years of experience in the consumer products and packaging industries, holding various engineering and management positions at Rayovac, Ingersoll Rand, Uniek Inc., and Placon.

Eric holds BS and MBA degrees from the University of Wisconsin–Madison. He is active in numerous professional organizations and serves as a board member for both InSinkErator and the Racine Theater Guild. Eric and his wife reside in Madison with their two children.

Kevin O'Marah

Eric Smith

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by Caryl Knutsen

On the day after the Executive Advisory Board meeting, several board members and alumni joined Center students, faculty, and staff for a presentation by Kevin O'Marah, chief strategy officer of AMR Research, and Steve Loehr, vice president of client enablement for IBM Global Operations’ Integrated Supply Chain Management. They led a discussion of what it means to be a globally integrated enterprise and what that means to the supply chain function. To illustrate the wide reach of supply chain management and its change from a functional discipline to a business discipline, Kevin delved into nontraditional applications of supply chain concepts in the realms of health care, entertainment and media, and sustainability.

Steve provided some background and examples of how IBM has extended supply chain principles to services and labor. Space constraints allow this article to touch on only a few key points of the information-packed session. Kevin’s discussion of the health care industry began by identifying a number of issues that plague the industry. Over the last few decades, health care and life sciences companies have built silos both tall and wide. As a result, the value chain lacks visibility, processes are disconnected and suboptimized, a network operations strategy is absent, and trust and communication between providers and payers are rare. Without transparency and collaboration, inefficiencies, waste, and excess cost will continue to run rampant in the value chain. Furthermore, analysts at AMR Research have found that there is great confusion about who the customer is (patients? providers? doctors? pharmacies?). Top issues confronting hospitals are financial challenges such as profitability and growth, caring for the uninsured, and the rising cost of supplies, compounded by a general unawareness of how dissatisfied many patients and doctors are. Hospitals

The Grainger Center’s annual Executive Advisory Board meeting was held on October 15, 2009. Second-year supply chain management MBA students made presentations to the board about their summer internship projects, providing a unique and valuable opportunity to showcase their knowledge and achievements to top supply chain management executives. The day also featured ample opportunities for networking and socializing with board members and Center alumni and faculty.

For many, the highlight of the meeting was the panel convened during the afternoon session, during which board members discussed the impact of the recession on their supply chain operations. They shared some of the tactical and strategic responses of the supply chains at their companies to the unprecedented and unanticipated changes in economic conditions and demand over the past year. They were also asked, “Do you think these changes are temporary or permanent?” Several themes emerged in the discussion, including:

» Supplier risk• Most panelists mentioned that financial

strains in the supplier network triggered stress testing for significant suppliers to determine their financial viability

• Tier-1 and tier-2 suppliers were investigated for financial viability

• While no one injected cash into a critical supplier, a couple of firms accelerated payments to important suppliers to help ensure their viability

» Acceleration of contract renegotiations— a few firms changed their renegotiation time frames from yearly to more frequently (to monthly, in one case).» Reduction in inventory—many panelists stated that they reduced their inventory levels to reflect reduced demand and achieve cost savings.» Cash conservation was the overriding priority for most firms. Many stated that they paid suppliers less promptly in order to conserve capital.» Private label is growing as customers seek greater value.» Companies are investing in sustainability— for environmental reasons and to reduce current costs through less bulky

ExecutiveAdvisory Board Meeting

packaging, reduced waste in production, and lower power consumption.» Head count reductions—reflecting general reductions in staffing, supply chain personnel declined by up to 40 percent in some firms.

Several firms appeared to be carefully balancing competing priorities. For instance, while reducing costs almost across the board to conserve cash, most board member companies were increasing their focus on customer needs to improve customer service. Many of the executives also stated that their companies were positioning themselves to take advantage quickly of improved economic conditions by relocatingdistribution centers and logistics networks. All of the panelists seemed to agree that most of the changes implemented over the course of the past year were permanent. Although they anticipated a slow improvement in economic conditions, many of the firms represented on the Executive Advisory Board believed they would continue their efforts at cash management, improved inventory management, and periodic review of critical suppliers.

tend to not understand the meaning of supply chain management and spend very little on technology to support supply chain management processes. Patient safety always trumps cost in driving technology investments, so hospitals need to incorporate both these factors when designing their technology initiatives. To provide high-quality patient care at optimal economic cost, the health care industry needs to link strategy to value in the health care value chain through bidirectional visibility, enabling technologies, building sustainable collaborative relationships, business process innovation, and alignment in terms of both metrics and a shared vision and goals.

In contrast to the low visibility and not-so-strategic use of information that characterize the health care industry are the extremely strategic use of information and high visibility of the media and entertainment industry. Kevin’s presentation continued with some observations about this sector and the supply chain management challenges therein. The total economic output of the media and entertainment industry outpaced agriculture decades ago and is likely to outpace manufacturing in the near future. The supply chain in this industry is based on consumer-driven information content, and the economics are very different from traditional supply chains. The creation of the product—information—is a one-time, virtually cost-free enterprise; consumption/use of the product is indefinite, and content is often freely shared among users. There is so much content that providers and distributors are losing control of the audience, and it is nearly impossible to put a price on the content and control it. Some of the supply chain challenges regarding content and information include shelf life, componentization, interoperability, and how to value the assets. Kevin concluded with an interesting observation about the

intersection where products and intellectual property meet, where information and an intellectual property stream are embedded in a physical product (think Nike and the Walt Disney Company).

Continuing with the theme of nontraditional supply chains, Steve discussed IBM’s transformation from a hardware company to an information and technology service provider. Today, the company is positioned to help clients transform their businesses in the midst of rapid change; apply supply chain expertise to other parts of its own business; and lead governments and businesses to imagine and build a smarter planet. One ex-ample of how IBM is applying and extending supply chain principles to transform business is its Workforce Management Initiative (WMI), which looks at the entire labor pool at IBM as a resource and applies supply chain design best practices to get the right person, at the right cost, in the right job, at the right time. Providing central oversight of strategy, measurements, and investments, WMI optimizes talent pools and allows global visibility of the expertise across all business units. It uses comprehensive professional profiles to provide precise staffing and essentially facilitates a global talent exchange. IBM has quantified some real business results: increased client satisfaction, faster and more effective bid response, avoidance of unnecessary hiring and use of subcontractors, and more than $1 billion in savings. Another nontraditional application of supply chain management principles was a project to solve a huge traffic problem in Stockholm, Sweden. The goal was to use technology to reduce congestion, improve public transport, and alleviate environmental damage. The system improved both congestion and overall quality of life in the city. Results included a 25% decrease in traffic, a 60% boost for inner-city retailers, and a 40% drop in greenhouse gas emissions in the city.

Supply Chain frontiers: Applications of Supply Chain Principles to nontraditional Processes

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All supply chain management MBA students found valuable internship positions at leading companies in

incredibly diverse industries, ranging from biotech in Boston to high-tech in Silicon Valley, with mining, beer, transportation, medical devices, and more in between. What the projects all had in common were strategic improvements in business processes.

Samy AffoShure, IncorporatedNiles, IL

As a supply planner intern on the operations team at Shure, Samy worked on two main process improvement projects for

new product introduction teams. His primary project consisted of standardizing supply chain tasks, milestones, and processes for new product introduction. He developed metrics and detailed process documentation for each milestone, and he worked with supply planners, SAP analysts, and engineers and researched best business practices to complete the project. The main benefits of his project were increased visibility, consistency, and measurability of supply chain tasks during new product launch processes.

Ajay BalasubramaniamGenzyme CorporationFramingham, MA

As an enterprise resource planning (ERP) program summer intern at one of the world's leading biotechnology companies,

Ajay worked with multiple teams, including master data management, system architecture, interfacing, and compliance and validation. The primary objective of his internship was to understand and analyze the ERP implementation process and suggest strategic approaches for process improvements. Ajay’s analysis concentrated on the feasibility of having a quality assurance function for ERP enhancements by considering costs and benefits of having QA outsourced or performed in house. Other recommendations included

defining a structure for the QA function within the ERP framework and the enterprise as a whole. Ajay presented his findings to the senior leadership team and enjoyed the experience of being involved in a process improvement project.

Mark DyerGenzyme CorporationFramingham, MA

As an intern in Genzyme’s global supply management organization, Mark worked on a variety

of projects, including the selection of an enterprise resource planning integration partner, a systematic sales and operations planning process review, the formulation of product allocation design plans, and the integration of acquired products into the formal Genzyme business processes. During a major supply chain disruption that included an unexpected and immediate loss of production capacity, Mark worked closely with the business units to move existing inventories to markets where none existed and helped to implement drug allocation plans that would allow the maximum number of patients to continue receiving uninterrupted treatment. Due to the rapid pace of growth at Genzyme, the global supply management organization determined that a new ERP system would be necessary to continue to effectively satisfy patient demand. Mark was part of the team that assessed competing bids, determined whether the potential systems could meet Genzyme’s needs, and completed the statement of work that will guide the final implementation over the coming months.

Chris GajdostikLogitech Fremont, CA

Logitech’s worldwide supply chain department has been working

to drive the statistical forecasting process with sales data representing the outbound shipments

of distributors and retailers (sell-through) rather than sales data that represents shipments into the channel (sell-in). Chris’s project involved analyzing European sell-through data to assess its usefulness for statistical forecasting and to find the optimal tradeoff between forecast detail and forecast accuracy. In addition to analyzing the optimal levels of detail and accuracy, Chris discovered a higher level of forecastability among certain channel partners, countries, specific product categories, and products representing the top 80% of sales volume (using the 80/20 principle).

Terry GoeldnerAmerican TV & ApplianceWaukesha, WI

Terry interned with the Logistics and Distribution Department of

American TV & Appliance, a Wisconsin-based mid-level retailer that sells furniture, TVs, and appliances in five states throughout the Midwest. He analyzed American’s recycling program, including the recycling of appliances, bedding, electronics waste, and TVs. In particular, Terry reviewed the initial implementation and performance of American’s new TV and E-waste recycling program. He collected and evaluated data on operational procedures and cost structure, identified and verified partners, and exposed potential legal risks for management to review. The recycling effort will be used to help American develop a new marketing platform featuring its “green” initiatives while being cost neutral and addressing growing market need among its customers and its communities.

Gloria GuoLogitechFremont, CA

Gloria worked on two projects related to forecasting and demand planning in Logitech’s worldwide

supply chain division. The first project was driven by Logitech’s use of total point-of-sale SU

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By David Poytinger

Keenan D. Yoho, assistant professor at the Naval Postgraduate School in Monterey, California, led the first of the Center’s applied learning sessions this fall. His presentation on the management of risk and uncertainty in global supply chains highlighted some of the major issues facing global supply chain managers today. Keenan took big-picture supply chain issues and made them accessible by using real-life case studies. One case study in particular, which looked at some of the major problems facing the production of Boeing’s new 787 Dreamliner, helped students to understand the importance of managing risk appropriately.

The story of the Dreamliner is commonly known. The plane that was supposed to revolutionize the airline industry with its 50% composite materials construction, fuel efficiency, and innovative production processes has been plagued with constant delays that are mostly attributed to breakdowns within Boeing’s supply chain. Looking carefully at some of the major hurdles Boeing had to overcome, Keenan pointed out areas where more efficient risk management could have been used to proactively identify areas of concern within both the design and production processes. Supply shortages, components not produced to specifications, and component defects were all problems that resulted from ineffective management of the global supply chain.

Using the Dreamliner case study as a base from which to work, Keenan explained how risk and uncertainty could have been more appropriately accounted for in the design and production processes. He highlighted some key questions facing not only Boeing, but also global supply chains around the world:

» How should consideration of risk be incorporated into the product and process design decisions?» How should we consider risk and uncertainty in execution and performance? Failure to account for such risks can have ramifications beyond simple delays in the production. Competitors are able to capitalize on lost sales with competing products. Investor confidence begins to wane, and stock prices take hits. Suppliers struggle to keep up with production as payments are delayed and, in worst cases, are unable to produce necessary components to complete production.

A key learning from the presentation was how to segment risk to differentiate critical components of any process from those that are only ancillary. Applying these skills to real situations is easier said than done, but expert guidance, as shared by Keenan, make the prospect of success more likely.

Management of risk and Uncertainty in Global Supply Chains

Keenan Yoho

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numbers to forecast, which can give skewed forecasts for heavily promoted items. She built a model to segregate normal run rate sell-through with promotional activity uplift so Logitech can drive its baseline statistical forecast off of only base sales. Logitech implemented the model and was very pleased with the results. Gloria’s second project involved retail analytics; the purpose was to find sales patterns of Logitech products at BestBuy, Staples, and Wal-Mart to optimize Logitech’s stocking levels and increase revenue. By building quantitative models to analyze promotions, seasonality, demographics, inventory availability, and store display, Gloria was able to provide great insights in these channels to facilitate Logitech predictions of sell-through.

andrew McMurdieDIRECTV, Inc.Engelwood, CO

Andrew worked as a global supply chain analyst in the supply chain department at DIRECTV. His

project was to analyze the global supply chain and identify opportunities for optimization and combined sourcing spend between DIRECTV US, DIRECTV Latin America, and affiliates SKY Mexico and SKY Brazil. Andrew worked closely with manufacturers, the logistics provider, and supply chain officers throughout Central and South America to acquire the necessary data for the analysis. He developed a landed cost analysis that helped to identify the optimal manufacturing locations for combined sourcing and presented these findings, along with his recommendations, to the supply chain directors and senior executives. As a result, his recommendations will be presented to the other companies during the next global supply chain summit.

David PoytingerMillerCoors, LLCMilwaukee, WI

In the packaging division of MillerCoors corporate procurement, David

worked on numerous projects that represented significant value-adds to the organization. With his largest project, David developed and executed a $250 million RFP for fiber carriers (think six-pack bottle carriers) with SAP’s eSourcing application. Developed with the goal of expediting expected synergies from combining the legacy Coors and legacy Miller pieces of the business, this represented the first time the division used eSourcing to host an RFP of significant size and scope. After successfully executing the RFP in eSourcing, David developed an event template for direct materials within eSourcing with emphasis on a supplier-centric approach. The template, along with the new approach, is being used as a model to develop future RFPs in the packaging division.

Aaron PrevostLife TechnologiesBuffalo, NY

Life Technologies (formerly Invitrogen) is a global biotechnology tools company. Aaron worked for the bio-

production group on an internal product line realignment and pricing project. The product line structure at Invitrogen did not clearly define SKU responsibilities for product managers, resulting in misaligned incentives, duplication of product promotion efforts, and metrics unreflective of the product manager’s true effectiveness. Aaron’s recommended structure reduced the sharing of product line responsibilities and brought it more in line with the rest of the company. For the pricing project, Aaron studied the competitive environment and how Invitrogen’s product differentiated to determine the best positioning for the company portfolio. For some

products, a price leadership position was recommended to maintain and take advantage of the GIBCO® brand equity. For other products, a penetration pricing strategy was utilized to maximize long-term profitability.

Richard ShtivelbandG.I. Liquor WorldBrooklyn, NY

Motivated by a personal desire to help improve the profitability of a family-owned store, Richard

spent the summer exploring supply chain man-agement problems related to the retail liquor store industry. His main project focused on exploring how store owners could make smarter merchandise purchasing decisions from their distributors. He developed key performance metrics and simulation models that allow purchasing strategies to be tested that store owners can use to make better purchasing decisions. He is currently in the process of developing a software tool that incorporates the insights gained from working on this project and hopes to work as a consultant in this industry.

Amber SleichterSchneider NationalGreen Bay, WI

Amber interned in Schneider National’s van truckload operations line of business.

While Schneider goes through an extensive companywide business systems transformation, Amber was able to take full advantage of the situation and tackle several significant projects related to developing new performance management processes, cost analysis, improving bill of lading paperwork compliance, improving forecasting accuracy, and implementation plans for all recommendations. Most notable was the end-to-end creation of a consistent companywide driver associate performance management tool that brought together key performance metrics to give a holistic view of individual driver performance in five key areas.

The new visibility the tool brought has enabled Schneider to improve its management of driver performance, achieve cost savings through improved efficiencies, and it has paved the way for performance-based driver compensation.

Justin SpaethBoston ScientificSt. Paul, MN

As part of the materials management team in the cardiac rhythm management unit,

Justin was tasked with harmonizing material handling, receiving, and shipping procedures across the supply chain. Before this summer, the processes surrounding incoming and outgoing packages differed depending on geographical location, and, during a recent FDA inspection, it was strongly suggested that these processes be governed by the same procedures for each site. Justin was responsible for assembling a cross-site team consisting of members from Minneapolis, Ireland, and Puerto Rico to analyze and harmonize these procedures.

Emily ZhangBucyrus InternationalSouth Milwaukee, WI

Bucyrus International is a world leader in the design and manufacture of

high-productivity equipment for surface and underground mining. As a global strategic sourcing intern, Emily concentrated on supplier strategic alliances and global sourcing projects. She worked as a key member of the alliance team on steel and LTL sourcing projects. With careful and systematic formulation, calculation, analysis, and comparison, the team filtered top suppliers from hundreds of candidates all over the world and focused on alliances that involved collaboration rather than merely exchange. Emily conducted price analysis and supplier comparison, savings and coverage calculation, profile review, and many other key

analyses. The steel supplier alliance project and the LTL supplier alliance project brought the company more than $23 million in yearly savings.

A survey last spring indicated overwhelmingly that Grainger Center alumni want their gifts

to continue to provide a Kelly Ketchum Memorial Scholarship to an eligible second-year student. This scholarship fund was established in October 2003 to honor Kelly Ketchum (1964–2003; MBA 2001), who made an enormously positive impact as a student with the Grainger Center. The scholarship embodies two of the Center’s greatest strengths: it is a tangible demonstration of the commitment and support of our devoted and active alumni network, and it enables the Center to offer attractive financial aid packages that help the program compete for top MBA students.

Many thanks to the following donors and matching organizations who have generously contributed to this year’s scholarship:

Brad Blackmanverda BlytheTim Buhl Jake deanallen engelMingyuan FuJeffrey GarrettChristopher Grancherdenise Gravesrich and sandra haddadC. david hillerJeff and Maureen hodgdonabhijit indapJohn lehnensteve lindseyPete and kay lukszyssteve Medland and susan Golicic

richard MelbyChristopher MurphyTom nicholaslisa PerronneBrook rucinskinathan scheidlerJennifer schultzdale stangeMichael stewartshane strohllee and kristi Thorsonkevin and Brenda weadickGrace xiangsteve yazawa

Matching gifts from Dell, General Mills, W.W. Grainger, Inc., IBM Corporation, Raytheon, Shure Incorporated, and Tyco.

Extra thanks to Quraish Baldiwala (MBA 2001) and steve lindsey (MBA 2008), who screened candidates and selected this year’s winner: samy affo. Quraish and Steve cited Samy’s excellent background and experiences; his clear ideas on the relevance of the Grainger Center and its curriculum to his long-term career aspirations and success; and his knowledge of and passion for supply chain management. Congratulations to Samy!

Kelly Ketchum Memorial Alumni Scholarship and fundraising Update

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One of the Center’s fall executive speaker events welcomed César Lanuza, vice president and general manager, and Alfredo Moreno, drector of supply chain, both at Grainger-Mexico (Alfredo is also a 2002 Wisconsin MBA supply chain management alumnus). César and Alfredo discussed the company’s strategy in Mexico from both companywide and supply chain standpoints, including the differences between doing business in the United States and Mexico, sustainability initiatives, the current economic climate, and how the company executes its superior customer service model through its supply chain.

Although Grainger is strong in the United States and Canada, Mexico is a relatively new market for the company. As a result of its strong position in the United States and Canada and customer shifts south, Grainger’s biggest growth opportunities are in the rest of the world; Grainger is following its customers into lower-cost labor countries such as Mexico. The Mexican economy is highly correlated to economic cycles in the United States; 80% of exports go to the United States, and Grainger-Mexico is growing at five times the rate of the Mexican economy. Supply chain played a critical role in Grainger-Mexico’s strategy and expansion.

In terms of Grainger-Mexico’s market expansion, revenue, customer base, and sales force have all doubled in recent years; customer acquisition follows branch openings; traditional customers in the north have very different needs and support very different markets than customers in central and southern Mexico. The company has entered new and important markets, including oil and gas, mining, safety, and hospitality.

by Steve Harris

Executive Speaker Series:

Alfredo Moreno (left) and César Lanuza of Grainger-Mexico

Superior Customer Service through Supply Chain Management at Grainger-Mexico

An important part of the Grainger-Mexico strategy has been major enhancements to its logistics network. The company started with a detailed logistics network analysis and realized vast untapped potential that could only be satisfied with an extension of its branch network. The company targeted a 90% next-day service metric and strategically located distribution centers and master branches with meeting this objective. The investment in the logistics network allows the company to expand its product line and offer better service nationwide. In addition to a main cross-dock in Monterrey, three new regional distribution centers and 22 branches offer increased response times across Mexico.

Product-line expansion has been a critical factor in the company’s growth and is another part of the company’s strategy. Grainger-Mexico is now a national provider. It has doubled the number of SKUs available in Mexico, it developed highly

localized product lines, and new products represent 10% of revenue. New SKUs, a leadership position in safety products, and a private label business were pillars of the strategy. Private label is a growing business, with 13% higher margins than on national brands that have the added benefit of differentiating Grainger from competitors. Grainger-Mexico has also managed to expand beyond its core market of manufacturing into oil and gas, mining, and hospitality.

Grainger-Mexico’s formula for supply chain success includes:» Don’t guess on inventory (size and location). » Develop a fast and responsive network to reduce cycle times.» Continuously evaluate the logistic network.» Adapt product quality and pricing to the country.

fACULTy Kersi AntiaAssistant Professor, Marketing

Verda BlytheLecturer, Marketing

Gregory DeCroixWisconsin Naming Partnership Professor of Operations Management

Jan B. HeideProfessor and Irwin Maier Chair in Marketing

Peter B. LukszysSenior Lecturer, Marketing, andDirector of Applied Projects

John M. McKellerSenior Lecturer, Marketing and Procurement/Supply Management

Deborah MitchellSenior Lecturer, Marketing

James G. MorrisDean’s Professor of Operations and Information Management

John R. NevinChair, Marketing

James RappoldAssistant Professor and Director, Supply Chain Management Executive Education

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Kudos

Awards, honors, Scholarships Mark Adkins Grainger Wisconsin Distinguished Graduate Fellowship

Samy Affo The Logistics Council ScholarshipInstitute for Supply Management Scholarship, Madison ChapterKelly Ketchum Memorial Alumni Scholarship

Mark Dyer The Logistics Council ScholarshipInstitute for Supply Management Scholarship, Madison Chapter

Christopher Gajdostik Grainger Wisconsin Distinguished Graduate Fellowship

Terry Goeldner Automatic Guided Vehicle Systems Product Section Honor Scholarship, Material Handling Education Foundation, Inc. Institute for Supply Management Scholarship, Madison Chapter

Gloria Guo Steel King Industries Honor Scholarship, Material Handling Education Foundation, Inc.

Steve Harris Frechette Family Foundation Project Assistantship Jennie MeresakGrainger Wisconsin Distinguished Graduate Fellowship

Alumni news

Over the summer, several students, past and present, met for an evening of socializing in Minneapolis. Pictured L to R: Verda Blythe, Steve Komerofsky (BBA 2007), Caryl Knutsen, Justin Spaeth (MBA 2010), Lisa Perronne (MBA 2004), John Ramer (BBA 2008), and Paul Studer (BBA 2007).

On October 16, several alumni attended a reunion/networking event at the Fluno Center Study Pub. At left, seshu anne (MS 1994) catches up with Jack nevin.

Jeff Hodgdon (MBA 2002) and his wife Maureen announce the June 15, 2009, birth of daughter Grace Judene Hodgdon. Jeff is Director of Materials at Tower Tech Systems, Inc. in Manitowoc, WI.

Norah Muenkel (MBA 2006) and her husband Dan announce the August 24, 2009, birth of son Beckett Anderson Muenkel. Norah is Global Category Manager at Motorola in Deer Park, IL.

Kyle Ramey (MBA 2007) and his wife Megan are the proud parents of Annika Ramey, born September 19, 2009. Kyle is Process Specialist Principle at Genzyme Corp. in Framingham, MA.

Matt Kading (MBA 2007) and his wife Samantha announce the September 25, 2009 birth of Ansel Knoll Kading. Matt works in supply chain strategy at Cisco Systems in San Jose, CA.

Fundamentals of Supply Chain Management is the foundational course in the specialization curriculum. The course provides students with an understanding of the link between key business functions and how effective supply chain management can improve performance and provide competitive advantage. The course includes an exciting web-based simulation project, where student teams compete in managing a high-tech company’s supply chain.

UnDErGrADUATE SPECIALIzATIonSupply Chain Management

Popular with Students, Employers

In addition to the highly regarded MBA program in supply chain management, the Grainger Center offers a specialization in supply chain management to all undergraduate students enrolled in the Wisconsin School of Business. Students can add this specialization to their current business major. To complete the supply chain management specialization, students take six required courses and one of three electives. There are currently 15 students enrolled in the specialization.

Required CoursesFundamentals of Supply Chain

ManagementProcurement and Supply ManagementLogistics Management Marketing ChannelsProduction Planning and ControlEnterprise Systems and Supply Chain Management

ElectivesMarketing ResearchRetail ManagementOperations Research I

Undergraduates experience the close community, career development opportunities, and industry partnerships similar to that experienced by the Center’s MBA students.

by David Poytinger

Supply chain management students, faculty, and staff experienced firsthand a food production and distribution facility during a VIP tour of Kraft Foods’ iconic Oscar Mayer production facility in Madison, Wisconsin. We saw production line management and had the chance to sit down with industry leaders in supply chain management at Kraft Foods to discuss its current operations and some of the changes the facility is undergoing. The Kraft distribution system and the recent organizationwide SAP implementation were a few of the topics that were discussed in depth.

fall Site Visit: Kraft foods/oscar Mayer

The Kraft Foods facility in Madison produces Oscar Mayer and Louis Rich brands of cold cuts, hot dogs, bacon, and luncheon meats. Products from the original Oscar Mayer facility are distributed nationwide either to Kraft’s seven regional distribution centers across the country, where products are in turn shipped to retailers, or to other Oscar Mayer and Kraft facilities for use in other products.

One of the highlights of the tour included following a hot dog from the raw materials stage to final packaging. Members of the

supply chain management team guided our group through the facility for two hours, pointing out some of the more unique aspects of the productions lines. This exposure to real-world industry best practices truly differentiates Wisconsin’s supply chain management MBA from other programs. The extensive tour and the informative presentation combined with some of the most memorable safety gear ever (pictured above), made the experience one that will not soon be forgotten.

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GrAInGEr CEnTEr ALUMnI...Where Are They now?Scott Pollyea, MBA 2004

Processes). Filing the patent application helped me to recognize that I desired a role that would enable me to use my education and experience in engineering and business. Filing the patent application set me on a path to obtain my current role, which is an excellent mix of the engineering and business disciplines, a job role that is giving me the skills and experience needed to eventually move into a chief technical officer position.

Why did you choose to pursue a degree at the Wisconsin School of Business through the Grainger Center?Because of the Grainger Center's reputation, curriculum, and unique model. I was extremely impressed with the students and faculty during my on-campus interviews. I was most impressed with the students; they seemed like a close group of friends that worked well together. Immediately following my on-campus interview, I knew that the Grainger Center was where I wanted to pursue my MBA.

How has the Grainger Center's curriculum better prepared you for your current job?The curriculum was excellent job preparation. Its cross-functional approach enabled me to take courses in operations research, entrepreneurship, supply chain management, new product development, and more. The skills and techniques I learned while pursuing my MBA at Wisconsin have enabled me to excel in all aspects of my career. I view the education I received at the Grainger Center as a foundation for my career. The courses always challenged me to think outside of the box and look at problems from different points of view. I received a foundation in operations research that has enabled me to excel at a number of different projects throughout my career. And the courses in supply chain management and the executive speakers and applied learnings were always intriguing and challenged us to question the status quo. Many of the courses and professors have had a lasting impression on me and have helped me to develop the critical thinking skills that are essential in my career.

What do you think are the most important issues and trends influencing supply chain management today?In my current job role, I see supply chain management through the lens of research and technology. There are a lot of advances being made in supply chain management, and stakeholders continue to find new and innovative ways to resolve problems in the supply chain. Unfortunately, very few of the stakeholders are making an effort to advance the art of supply chain management through IP protection. The number of companies that choose to protect patentable inventions in supply chain management are at a minimum. Patents make inventions known to the public domain and contribute to the advancement of technology. I would like to see many more companies begin seeking patent protection for their inventions.

How do you keep abreast of all the advances in the world of supply chain management? To keep abreast of advances in supply chain management, I receive RSS feeds and publications from Logistics Management, Supply Chain Management Review, Supply Chain Brain, RFID Journal, McKinsey Quarterly, Inbound Logistics, Logistics Quarterly, Supply Chain Daily, and many others.

Do you have any words of wisdom for current MBA students?Take advantage of every opportunity you have while in graduate school. The dividends may not be recognizable while in the program but will be recognizable later in your career.

John R. (Jack) Nevin

Jack is executive director of the Grainger Center and chair of the Marketing Department. He previously served as chair of the Marketing Department from 1988 through 1992 and associate dean of masters programs from 1999 to 2002. Jack earned a PhD in marketing from the University of Illinois.

His research is primarily concentrated in three managerial-oriented areas of marketing: marketing channels, supply chain management, and marketing strategy. His research has appeared in the Journal of Marketing, Journal of Marketing Research, Journal of the Academy of Marketing Science, Journal of Macromarketing, Journal of Retailing, Journal of Marketing and Public Policy, Journal of Applied Psychology, Journal of Marketing Channels, and Law and Society Review, among others.

Jack’s teaching responsibilities include traditional full-time MBA classes on marketing channels, marketing strategy, and supply chain management. He also actively participates in executive development programs and has served as a research consultant or expert witness for a number of organizations. He has been heavily involved with the American Marketing Association and the International Society of Franchising in a professional service capacity.

Verda A. Blythe

Verda is the director of the Grainger Center. She is responsible for marketing the Center to prospective students and employers, developing the applied learning program, and providing academic and career guidance to undergraduate and MBA students. She works closely with the Center’s faculty and Executive Advisory Board on program strategy and leads outreach activities with alumni, employers, and professional associations. Verda has presented at various conferences about industry-educational partnerships in supply chain management, and she teaches two courses: Fundamentals of Supply Chain Management in the undergraduate curriculum and Ethical Leadership in the MBA curriculum.

Verda brings 13 years of supply chain industry experience to her position, having worked in various functions, including procurement/sourcing, production, and logistics. After earning a BBA degree in logistics from Iowa State University, she worked for Ruan Transportation Management Systems in various roles, including quality, planning, and customer development. In 2002, she graduated with an MS degree in supply chain management from the University of Wisconsin-Madison and is a Grainger Center alumna. Her summer internship during graduate school was in logistics and materials management at Harley-Davidson Motor Company. Upon graduation, she joined IBM’s integrated supply chain, where she worked in global procurement and the systems and software group, both domestically and abroad.

Caryl Knutsen

Caryl is the assistant director of the Grainger Center. Managing the daily operations of the Center, she works with current and prospective students, alumni, employers, faculty, the Executive Advisory Board, industry professionals, and administrators within the Wisconsin School of Business. Caryl leads the marketing and communications activities and manages the production of Center publications and the web site. She also coordinates the applied learning curriculum, which includes executive speakers, industry-led seminars, networking events, and corporate site visits. Caryl develops and recommends improvements for processes related to admissions and recruiting, student services, and programming for undergraduate and MBA students; coordinates alumni development activities; and manages the work of three project assistants. Caryl has been with the Center for eight years. She holds a bachelor of arts degree in English. Before joining the Wisconsin School of Business, she worked in scholarly publishing for 14 years at the University of Pennsylvania.

Staff

Scott is the industrial sector lead engineer in intellectual property licensing and alliances at IBM in Boulder, Colorado.

Could you give us an overview of your area at IBM?For 16 consecutive years, IBM has had more U.S. patents issued than any other company, and in 2008 IBM had 4,186 patents issued. At IBM, we view patents and other forms of intellectual property as an asset. Due to this fact, we invest, develop, sell, and protect our IP assets. We capture our IP through our research, product development, manufacturing, and services organizations. We then use our IP to collaborate across industries, enter into joint development agreements, and use IP in our services engagements. In addition to these uses, we license and sell our IP to interested parties. As a result of these activities, IBM earns about $1 billion in income annually.

What is your role and responsibility at IBM?As the industrial sector lead engineer in intellectual property licensing and alliances, my primary responsibility includes leading a team of engineers in our effort to license and assign IBM's patents. I am responsible for ensuring that our engineering strategy is in line with the needs of the business to close licensing and patent assignment deals. I coordinate the efforts of the engineering team with business executives, IBM legal counsel, and IBM research to ensure that all assets needed for a licensing, assignment, or technology deal are in place for discussions with clients.

What has been your most significant achievement to date?Personally my most significant achievement to date is my family, with my sweet wife Becky and four wonderful children (Annie 9, Gavin 8, Ryan 5, and Braden 2). From a career perspective, I consider my most significant achievement to be the filing of my first patent application a few years ago (System and Method for Automatic Computation of Validation Metrics for Global Logistics 18 19

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www.graingercenter.com

Supply Chain Update is produced with funds made available by the Grainger Center for Supply Chain Management Opportunity Fund. Editor............ Caryl KnutsenReporters....... Steve Harris (MBA 2011) David Poytinger (MBA 2010)

2009 MBA Placement Success

Each student in the Center receives personalized career advising. Supply chain management talent is in high demand, and the opportunities in the field are tremendous. Our graduates are known for achieving quick success, and average starting salaries are consistently among the highest of our peer schools. The Center has a remarkable placement record, and this year was clearly no exception.

MBA Internships (100% placement)

Company Location American TV Waukesha, WIBoston Scientific St. Paul, MN(1 of 2 offers accepted)

Bucyrus International Milwaukee, WIDirecTV Englewood, COGenzyme Corporation Cambridge, MA(2 of 2 offers accepted)

G.I. Liquor World New York, NYS.C. Johnson & Son, Inc. Racine, WI(2 offers) Life Technologies Grand Island, NYLogitech Fremont, CA(2 of 2 offers accepted)

MillerCoors LLC Milwaukee, WISchneider National Green Bay, WIShure Incorporated Niles, IL(1 of 2 offers accepted)

Average monthly base salary offer: $5,125Average monthly base salary accepted: $5,016

Full-Time Employment (100% placement)

Company Location Job Title Cisco Systems, Inc. San Jose, CA Demand Planning ManagerEssilor of America Dallas, TX Senior Marketing AnalystGenzyme Corporation Framingham, MA Oracle Functional AnalystW.W. Grainger, Inc. Lake Forest, IL Senior Planning AnalystHewlett-Packard Houston, TX Business Planning AnalystKinsella Group Chicago, IL AnalystLogitech Fremont, CA Supply Chain Planning AssociateMueller Sports Medicine Prairie du Sac, WI Sales Manager, Greater China and Southeast AsiaRaytheon Boston, MA Supply Chain Leadership Development ProgramSears Holdings Corporation Hoffman Estates, IL Merchant MBA

Average full-time base salary offer: $90,071Average full-time base salary accepted: $86,500Average accepted signing bonus: $11,620

Bold type indicates an accepted offer. Bold type indicates an accepted offer.