September 10-11, 2009 - Fall 2009 Supply Chain Leaders Forum: Guiding Supply Chains out of the Downturn
State College, PA - The main topic for this year’s Supply Chain Leaders Forum hosted by the Center for Supply Chain Research focused on what companies should be doing as they navigate the challenging economic landscape. Darren Maynard, Principle at DPM Consulting, served as the program director. He opened the forum by discussing his presentation which centered on value—more specifically, what is your value proposition to the customer?
Mr. Maynard explained that the best way to provide value is through comprehensive understanding of the outside market forces which impact a customer or company. He stated that winning companies reflect and get creative in times of economic stress, as opposed to straight-line cost cutting. “Waiting for the next (business) cycle is a survivor mentality rather than a winning one”, Mr. Maynard stated.
The theme of ‘what do we do now?’ was echoed for the balance of the forum agenda. It was agreed by all presenters that we have entered a world much different from the recessions of the past. The supply chains of the future must be designed to react swiftly to the volatility of the marketplace.
Henry Dao, Associate Partner at IBM Global Business Services, pointed out that the top three items on supply chain executives’ priority list in importance to their networks are:
1. Supply chain visibility;
2. Risk management;
3. Cost containment.
Regarding cost containment, an item that was discussed by many was the notion of increasing the amount of smaller,
collaborative, multi-client DCs to reduce the carbon footprint created by the transport of products. John Morris, Partner at Cushman & Wakefield, Inc., delivered an extensive presentation on sustainability capturing the details of this idea.
In order to execute the flexible demands of the new supply chains, nearly all presenters emphasized the importance of talent in your organization. Dr. James Tompkins, President & CEO of Tompkins Associates, said, “use the recession to upgrade talent…talent is more important now than ever. Keep your talented associates and eliminate non-producers. This will equate to increased productivity without hiring.” Mr. Maynard’s opinion on personnel was similar. “If the greatest asset to a company is an employee, be selective in hiring and then invest in education for those providing productivity.”
Mr. Maynard wrapped up the forum on the notion that we cannot solve the puzzle of today’s economic downturn using the tools of analysis from the past. “In a stable world, we could identify the issue and apply the solution. Today we need to use creative, lateral thinking because standard solutions may not work.”
Below are links for details on the presentations:
Guiding Global Supply Chains Out of the Downturn: Program Introduction, Darren Maynard, DPM Consulting
Managing in Continued Downturn? Upturn? Sideways? What Supply Chain Levers Do You Manage?, Robert Boehm, Deloitte Consulting, LLP
Global Networks, Case Newberry, MASCO
The New Supply Chain Imperative, John Morris, Cushman & Wakefield Global Consulting
Information, Technology and the Coming Economic Upturn, Dr. John Jordan, Supply Chain & Information Systems, Smeal College of Business, Penn State
Supply Chain Risk Management in Good and Bad Times, Henry Dao, IBM Global Business Services
The Great Comeback: Defining Your Post-Recession Plan, Dr. James A. Tompkins, Tompkins Associates
Guiding Global Supply Chains Out of the Downturn: Program Summary, Darren Maynard, DPM Consulting
About Smeal College of Business
The Smeal College of Business at The Pennsylvania State University offers highly ranked undergraduate, MBA, executive MBA, Ph.D., and executive education opportunities to more than 5,500 students at all levels. Smeal is among the ten largest business schools in the United States, and is accredited in business and accounting by the Association to Advance Collegiate Schools of Business (AACSB).