38th Annual Supply Management Program

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Monday — March 7, 2005

Morning Session

Corporate Social Responsibility and the Supply Chain
Marianne Moody Jennings, J.D.
Professor, College of Business
Arizona State University

The only sustainable competitive advantage a company has is its reputation. Reputations are made and sustained in part by the activities and decisions that managers make about the environment, safety, human rights and philanthropy. These diverse areas come under the heading of corporate social responsibility (CSR). CSR is management's duty to make decisions and take action so that the firm contributes to the welfare and interest of both society and itself. How can supply chains be managed in a socially responsible way? How can activities and objectives of internal functions and supply chain members be coordinated? In this provocative session, Dr. Jennings challenges your thinking and perceptions of ethics, values, corporate culture and social responsibility. Through examples, anecdotes and research results, she presents compelling evidence that social responsibility, performance and long-term success are linked.

Afternoon Session

Developing and Implementing Supply Strategies in an Environment of Uncertainty: A Supply Strategy Simulation
Anna E. Flynn, Ph.D., C.P.M.
Vice President and Associate Professor,
ISM and Director of the 38th Annual Supply Management Program

Strategy development is when supply managers analyze internal and external factors and draw conclusions about risks and opportunities. Strategy implementation is when supply managers find out how good their analysis and decisions really were. Using a simulation game developed in the United Kingdom, participants work in small teams to develop a supply strategy and implement several rounds of sourcing decisions. Results show the impact of supply decisions on sales revenues, efficiency, product quality, and ultimately the company's profit and loss. In Europe, this computer simulation has received rave reviews from companies such as Kraft, B&Q, Alcoa and Heinz. (ISM has exclusive rights to the simulation game in the United States.)

Each team develops and implements a supply strategy for a fictional company in an environment of friendly team competition. The goals are to lower production item costs, improve quality and service, and get best-value contracts on non-production items. Teams work within an established operating budget and time limits. Market and company data are available. Teams gather intelligence on suppliers and supply markets, conduct strategic analysis, develop a strategy, apply a range of tools and techniques, and take action. There are 17 intelligence-gathering options such as the latest consumer satisfaction report, feasibility studies and investment bank reports. There are 19 supply chain tools available, including supplier price benchmarking, supplier quality initiatives, reverse auctions and supply base rationalization.

During this session, teams develop a sourcing strategy and make 2 rounds of supply decisions. Dr. Flynn facilitates a discussion about the strategies employed and their outcomes. The discussion focuses on the thinking processes of the teams and highlights some of the key areas of supply strategy.

Tuesday — March 8, 2005

All-Day Session

Supply Strategy: Developing and Implementing Supply Strategy
Anna E. Flynn, Ph.D., C.P.M.

This session includes the final rounds of the supply strategy simulation. Teams have time to perform further analysis and adjust their strategies for emerging internal and external conditions prior to making supply decisions. Each team presents and discusses its commodity strategies with Dr. Flynn. After each round of decisions, strategy debriefs and discussions are held. Dr. Flynn presents additional information on supply strategy development and available tools and techniques. After the last round of the simulation, teams make a short presentation about their supply strategy including what worked, what did not and what they learned from the experience. This daylong session is highly interactive and fast-paced.


Group Dinner at a local restaurant.

Wednesday — March 9, 2005

All-Day Session

Developing an Effective Performance Management System
Angelo Kinicki, DBA
Professor of Management,
College of Business
Arizona State University

Organizations are systems. Effective organizations integrate and coordinate multiple systems and processes at both an organizational and individual level. One of these critical integrated systems is performance management. Research reveals that an orga-nization's financial performance and an individual's job satisfaction and organizational commitment are higher in companies that have implemented such systems.

This one-day session focuses on increasing your awareness and understanding about how performance management systems at both organizational and individual levels can help you maximize supply management's contribution to organizational goals and strategy.

Gain valuable tools and practical methods during this session. Take-aways include:

  • Describe the components of a performance management system at both an organizational and individual level — and evaluate where your organization fits in
  • Discuss the components of a balanced scorecard and a strategy map
  • Create a balanced scorecard strategy map for a supply management department
  • Write SMART goals

Thursday — March 10, 2005

All-Day Session

Supply Management and the Bottomline
Michiel R. Leenders, DBA
Professor Emeritus, Ivey School of Business
University of Western Ontario

Every major decision made by supply managers hits the bottomline. Every major decision made by supply managers affects the organization's competitive advantage. Do you know where and how your decisions about suppliers and supplier relationships affect your competitive advantage and bottomline?

Spend a day with Dr. Leenders exploring the opportunities to increase your bottomline impact and improve competitive advantage. To positively impact the bottomline and improve competitive advantage, you cannot mimic your competition. You must take an imaginative and aggressive approach to supply management. This means going beyond managing suppliers to creating suppliers.

Learn a step-by-step approach to create or inspire suppliers to meet your needs now and in the future. Find out how to capture and communicate the value of the supplier relations you create and manage. Dr. Leenders shows you how and where supply's contribution reaches the bottomline. The vision and mission of supply management comes alive through an intense and interactive day of examples, exercises and cases.


Group dinner at a local restaurant.

Friday — March 11, 2005

Morning Session (at the Embassy Suites, Tempe)

Anna E. Flynn, Ph.D., C.P.M.

Identifying and Implementing Best Practices in Supply Management

What makes a practice a "best" practice? And, if it is a best practice in one company, how can you be sure that it will get similar results in another company? In this session, Dr. Flynn discusses best or leading-edge practices in supply management and issues and challenges in transferring these practices from one organization to another. Areas of interest include knowledge management, tiered supplier management, e-sourcing and catalog management, and sustaining cost savings. Participants are asked in advance to provide topics of interest and these are incorporated into the session.

Future Issues and Directions in Supply Management

What does the future hold for supply management? During this closing session, Dr. Flynn presents a view of the future that has emerged from leading-edge research conducted by CAPS Research. CAPS Research is a nonprofit, independent research organization co-sponsored by the Arizona State University W. P. Carey School of Business and the Institute for Supply Management™. CAPS Research contributes competitive advantage to organizations by delivering leading-edge research globally to support continuous change and breakthrough performance improvement in strategic sourcing and supply.

Program Summary and Evaluation
Closing Luncheon (optional)