{"74601":{"#nid":"74601","#data":{"type":"news","title":"ISyE Provides Leadership in the Evolution and Growth of Supply Chain Engineering","body":[{"value":"\u003Cp\u003EUnlike other emerging fields such as nanotechnology\nor cloud computing, the pillars that underpin supply chains are not novel at\nall. Since ancient times, mankind has been transforming raw materials into\nproducts, whether it was grinding grain and adding water for a wood-fired cake\nor smelting iron ore to cast the first weapons.\u003C\/p\u003E\n\n\u003Cp\u003EBut raw materials had to be sourced. They were\ngrown, mined, hunted, or collected\u2014perhaps in a land \u201cfar far away,\u201d so there\nwas a need for perilous sea voyages, dusty camel treks over desert dunes,\narduous hikes along treacherous mountain ranges, or perhaps just a donkey cart\nride to the next village. \u201cIf I can make one for myself, why not make more than\none to barter or sell for other useful things?\u201d\u2014enter the village marketplace.\nOf course, in the olden days people also felt the effect of seasonality, so\nthere were barns, stockpiles, and mounds of pickled fish.\u003C\/p\u003E\n\n\u003Cp\u003EMuch may have changed since the days of the Dutch\nEast India Company\u2014we now talk of inventory control, distribution channels,\nintermodal transportation, and lean manufacturing\u2014but the key activities that\ncomprise supply chains are as old as time. An outsider to the field would thus\nbe excused for wondering what the hullabaloo of the past few decades is all\nabout. The truth is that the revolutionary developments in industry and\nbusiness over the last two centuries\u2014and indeed the last few decades\u2014has\nnecessitated an entirely new approach to managing these fast-paced \u201cchains\u201d of\nactivities that now span continents and involve multiple players. Companies in\ntoday\u2019s global markets recognize that it really is no longer \u201cmy product\nagainst your product,\u201d but \u201cmy supply chain versus your supply chain.\u201d It is a\nprevailing thought that a properly deployed, balanced, and strategically\naligned supply chain is a competitive weapon in the battle for market share and\nrevenue. It is the study and pursuit of this balance, alignment, efficiency,\nand responsiveness that has spawned supply chain engineering.\u003C\/p\u003E\n\n\u003Cp\u003EThe H. Milton Stewart School of Industrial and\nSystems Engineering (ISyE) has had its finger on the pulse of this new field\nsince the school\u2019s founding in 1948. Research and courses were not restricted\nto manufacturing alone, as was the norm in industrial engineering at the time,\nand included physical distribution and material handling. Beginning in the\n1960s, ISyE broadened its methodology expertise into operations research,\nentering the domain of transportation routing, network design, and inventory\ncontrol. Through the 1970s and 1980s, a variety of ISyE research centers in\nmaterial handling, logistics, and transportation were established. In 1992, the\nLogistics Institute was created to consolidate the wide range of\nlogistics-related research and education efforts that have helped ISyE\nestablish its number one ranking among industrial engineering programs.\u003C\/p\u003E\n\n\u003Cp\u003EThe widespread recognition of the term \u201csupply\nchain\u201d has come primarily as a result of the globalization and outsourcing of\nmanufacturing since the mid-1990s. Globalization accented the need for\nlogistics strategies to deal with large and complex commercial networks. There\nhas been an increasing trend to use the term \u201csupply chain\u201d to refer to\nstrategic issues and \u201clogistics\u201d to refer to tactical and operational issues.\nThis growing association of supply chain with strategy is reflected in the\nCouncil of Logistics Management\u2019s changing its name to the Council of Supply\nChain\u0026nbsp; Management Professionals (CSCMP) in\n2005. \u003C\/p\u003E\n\n\u003Cp\u003ECSCMP made the distinction that \u201clogistics is that\npart of the supply chain process that plans, implements, and controls the\nefficient, effective, forward, and reverse flow and storage of goods, services,\nand related information between the point of origin and the\u0026nbsp; point of consumption in order to meet\ncustomers\u2019 requirements\u201d while \u201csupply chain management is the systemic,\nstrategic coordination of the\u0026nbsp;\ntraditional business functions and the tactics across these business functions\nwithin a particular company and across businesses within the supply chain for\nthe purposes of improving the long-term performance of the individual companies\nand the supply chain as a whole.\u201d Maintaining its relevance to industry, the\nLogistics Institute changed its name to the Supply Chain \u0026amp; Logistics\nInstitute, reflecting the breadth and depth of ISyE\u2019s expanding mission of\ndeveloping technology and people to address the rapidly evolving engineering\nand management needs of the field.\u003C\/p\u003E\n\n\u003Cp\u003EHowever, don\u2019t let the fact that there is a formal\ndefinition of supply chain management and an official-sounding council to\ngovern its practice fool you into thinking there is widespread agreement in the\nsupply chain industry. Debate rages regarding its definition, what it\nencompasses, and its rightful place in an organization. The discussion will\nmost likely continue for the simple reason that supply chains vary\nsignificantly from industry to industry. Despite this grappling about\ntechnicalities, there are pertinent supply chain \u201ctruths.\u201d First and foremost,\nthere is no supply chain without a customer. Whether that customer is a mother\nof five buying groceries in a retail store, a billion-dollar airline expanding\nits fleet, a starving tsunami victim in need of basic necessities, or a trooper\nin need of ammunition on the battlefield, there is a need that must be\nsatisfied. What sets supply chains apart is how effectively and efficiently\nthey satisfy this need. Two other central truths are that of alignment and\nbalance. Added to this balancing act is the concept of strategic alignment with\nthe organization\u2019s goals\u2014miss this and you will find yourself walking the wrong\ntightrope\u2014 to the detriment of the organization.\u003C\/p\u003E\n\n\u003Cp\u003ECommercial supply chains are, by far, the most\nwidely studied and prioritized supply chains, simply because they affect every\naspect of our daily consumer lives. They have in common the overriding\nobjective of making and sustaining a profit but can differ vastly in how they\ngo about doing so. Take for example the difference between a supply chain for a\nretail distributor of fast-moving consumer goods and that of a high-tech\nelectronics manufacturer.\u003C\/p\u003E\n\n\u003Cp\u003EWalmart comes quickly to mind in the retail sector.\nThey will tell you very succinctly that they are not a series of stores spread\nout over the globe but rather well-defined and managed geographically dispersed\nsupply chains. Can you question their level of success? Walmart does not\nmanufacture anything. They are best at capturing point-of-purchase demand and\nthen anticipating and even shaping demand through volume purchases and discount\npricing.\u003C\/p\u003E\n\n\u003Cp\u003EIntel, on the other hand, boasts a high- tech\nelectronics supply chain that is also considered a best of breed in its\nindustry. They manufacture integrated microprocessors. Their success lies in\ntheir ability to navigate the perils of the high-tech industry, where the shelf\nlife of a product is usurped by tomorrow\u2019s technological advancements. Margins\non new product releases must be realized and captured quickly before they become\ncommoditized or replaced by advanced technology. The time criticality of the\nindustry and the nature and value of raw materials and finished goods\nprioritize lead time and speed to market as key decision variables within the\nhigh-tech industry.\u003C\/p\u003E\n\n\u003Cp\u003EHumanitarian supply chains are typically associated\nwith disaster-relief efforts but also include the long-term, sustained\ndistribution of services and material aid to impoverished individuals or\ncommunities. A good example of this comes from South Africa, where donated\nbreast milk is collected, pasteurized, and redistributed by an NGO to premature\ninfants with no access to their mother\u2019s own milk.\u003C\/p\u003E\n\n\u003Cp\u003EThe infants\u2019 predicament is not linked to a disaster\nper se, but is the result of the HIV pandemic and a lack of infrastructure and\nresources in the country\u2019s public healthcare sector. Disaster or no disaster,\nthese supply chains do not seek to make a profit\u2014 instead they seek to spend\nevery penny to save more lives and improve quality of life. A whole different\nset of complexities comes into play. Resources are always scarce as demand\nalmost always exceeds supply. Coordination, collaboration, and flexibility are\nabsolutely necessary but difficult to achieve when lives are at stake.\u003C\/p\u003E\n\n\u003Cp\u003EIn military supply chains, the word is\nreadiness\u2014poised to respond rapidly to low-probability, high-impact events that\ncould occur almost anywhere and affect the security and safety of an entire\nworld. It is understandable that these supply chains are gigantic, heavily\nregulated, and laden with inventory. When responding to one of these events,\nrobustness and reliability become the key performance measures. There can be no\ndisruption of supply to the battlefield, regardless of how many bridges get\nblown out or how many depots are infiltrated. Furthermore, soldiers in the\nfield must receive their supplies when, where, and in the condition they\nexpected, and there is very little room for error. Although military supply\nchains are concerned about the bottom line and cost-efficiency, a much higher priority\nis placed on establishing and maintaining predetermined readiness levels.\u003C\/p\u003E\n\n\u003Cp\u003EFrom these few examples, it is clear that successful\nsupply chains need to be custom built to fulfill their purpose. That is why the\nfield is termed supply chain engineering. Creating a supply chain from scratch\nor reengineering and optimizing an existing supply chain network to capitalize\non new opportunities both require rigorous analysis and thoughtful design.\u003C\/p\u003E\n\n\u003Cp\u003EFor each of these scenarios, the starting point is\nunderstanding the context. This goes far beyond understanding just the\norganization\u2014which may be but one player in a vast supply chain. A deep\nappreciation of the dynamics of the entire supply chain is required. Who are\nthe players, and how do their actions affect each other? What are the competing\nsupply chains within the same industry, and what are the complementary supply\nchains in other industries? What is required to establish and maintain a\ncompetitive edge within the industry? Furthermore, if the supply chain has a\nglobal reach; one has to also understand how politics, trade agreements, laws,\nand regulations affect the supply chain.\u003C\/p\u003E\n\n\u003Cp\u003EAgainst this backdrop, the supply chain can be\ndesigned. Of tantamount importance is the understanding of the organization\u2019s\nstrategic objectives and securing the buy in of upper-level management.\nMisalignment is easily the most common affliction of modern supply chains. The\nwrong set of metrics drive the wrong behavior\u2014often departments are\nindividually optimized to the disadvantage of the organization as a whole.\nTypically these first steps are considered the more \u201cbusiness\u201d side of supply\nchain engineering.\u003C\/p\u003E\n\n\u003Cp\u003EOnly once you have defined the strategy and\nestablished and aligned your key performance metrics against the backdrop of\nthe problem context does it make sense to roll up your sleeves and jump into\nthe tactical and operational aspect. This may include network optimization,\norganizational realignment, decision modeling and analysis based on landed\ncost, and risk management or more tactical initiatives such as inventory\nmanagement, transportation management, SKU rationalization, vendor sourcing,\nand procurement strategies. The toolset available to the supply chain engineer\nis vast\u2014borrowing from industrial engineering, operations research, business,\nand finance\u2014and choosing the correct tool for the job is a fine art learned\nthrough experience and exposure. \u003C\/p\u003E\n\n\u003Cp\u003EThe result of the engineering process is typically a\nsmall number of alternate designs (typically one or two) for the decision maker\nto choose from. Each of these designs will have been thoroughly evaluated by\nmeans of simulations, pilot projects, and\/or quantitative analysis to\nunderstand and predict both the operational and financial outcomes of its\nimplementation.\u003C\/p\u003E\n\n\n\n\u003Cp\u003ESupply chain engineering is both a science and an\nart. It requires rigorous analysis\u2014both quantitative and qualitative\u2014but also\nintuition, experience, and creative problem solving. Similarly, it is a field\nthat allows for specialists and generalists, strategists and implementers. One\ncould specialize in the development and application of network optimization\nalgorithms or become a consultant who studies the industry and the company in\norder to help define the problem. \u003C\/p\u003E\n\n\u003Cp\u003ESupply chain engineering is a field that gives you a\nwide range of career options. Within academia, there are a variety of research\ntopics to be advanced and a multitude of young minds to educate and train.\nIndustry offers an equally wide range. One could work for a consulting firm and\nget exposure to many different kinds of supply chains, be part of an internal\nsupply chain team that designs and manages the global supply chain of a Fortune\n500 company, or even be the chief supply chain engineer for a start-up company.\nOne could work for the military, non-governmental organizations, governments,\nor organizations like the United Nations and the World Health Organization. In\ndeciding on whether to embark on a supply chain engineering career, the\nquestion is not whether there is work for you in the industry you are\npassionate about but rather whether you are passionate about the way of\nthinking, the problem solving skills, and the paradigms of supply chain\nengineering.\u003C\/p\u003E\n\n\u003Cp\u003EFor more than sixty years, ISyE has provided a\nleadership role in the evolution and growth of supply chain engineering. This\nis reflected in the evolution of the School\u2019s undergraduate and graduate curriculum\nas well as faculty research and outreach. ISyE\u2019s progress has been led by two\nstrategic objectives:\u003C\/p\u003E\n\n\u003Cul\u003E\u003Cli\u003ETo offer more opportunities for\nspecialization at both the undergraduate and graduate levels\u003C\/li\u003E\u003Cli\u003ETo recognize the importance of applying\nour industrial engineering methods to increasingly complex and global product\nsupply chains\u003C\/li\u003E\u003C\/ul\u003E\n\n\n\n\u003Cp\u003EWhile ISyE still offers only one BS degree in\nindustrial engineering, the BSIE degree now includes four unique curriculum\ntracks for students to follow, one of which is supply chain engineering.\u003C\/p\u003E\n\n\u003Cp\u003EThe number of master\u2019s degrees offered by ISyE has\ngrown steadily during its history, the most recent addition being the Master of\nScience in Supply Chain Engineering. The first twelve graduates of this\nprofessional master\u2019s program will receive their diplomas in December 2011.\nVisit \u003Ca href=\u0022http:\/\/www.sce.gatech.edu\/\u0022\u003Ewww.sce.gatech.edu \u003C\/a\u003Eto\nlearn more about this program.\u003C\/p\u003E\n\n\u003Cp\u003EISyE also offers the Executive Master\u2019s in\nInternational Logistics \u0026amp; Supply Chain Strategy (EMIL-SCS), which was\nintroduced in 2001. EMIL-SCS offers real-world, practical value through\ntraditional course work, live cases, corporate site visits, webinars, and corporate-sponsored\nsupply chain projects at the leading cusp of industry trends. Designed for\nexperienced executives, the EMIL-SCS program is built around five intensive\ntwo-week residences in the United States, Europe, Asia, and Latin America. No\neducational experience in supply chain engineering would be complete without\nemphasizing the \u201cglobal\u201d component. For this reason, great effort is made to\nincorporate cultural, geographic, academic, and experiential diversity into\nboth the EMIL-SCS and the MS SCE programs. Visit \u003Ca href=\u0022http:\/\/www.emil.gatech.edu\/\u0022\u003Ewww.emil.gatech.edu \u003C\/a\u003Eto\nlearn more about the EMIL-SCS program.\u003C\/p\u003E\n\n\u003Cp\u003ENotably, education and training is only one facet of\nISyE\u2019s impact on the field. An impressive group of professors and PhD\ncandidates fervently pursue research adding to the field of supply chain\nengineering. Many of the faculty members are thought leaders in their own\nspecialty, and numerous Georgia Tech publications are considered key references\nwithin supply chain engineering. But beyond the intellectual towers of academia\nlies industry\u2014where the true value of all this new knowledge is put to the\ntest.\u003C\/p\u003E\n\n\n\n\u003Cp\u003ETo remain relevant, ISyE (and especially the Supply\nChain \u0026amp; Logistics Institute) actively engages in industry discussion\nthrough participation in associations and councils. A number of research\ncenters have been established, both in the United States and abroad, that\ninvite industry membership and participation. ISyE\u2019s approach to industry\ncollaboration actively seeks to close the gap between state-of-the-art and\nstate-of-practice issues. The world of supply chain engineering is growing\ndaily, both in scope and significance. Through its education, research and\nindustry outreach, the H. Milton Stewart School of Industrial and Systems\nEngineering is staying at the forefront of this evolution.\u003C\/p\u003E","summary":null,"format":"limited_html"}],"field_subtitle":"","field_summary":[{"value":"\u003Cp\u003EISyE\nProvides Leadership in the Evolution and Growth of Supply Chain Engineering: Closing\nthe gap between state-of-the-art and state-of-practice.\u003C\/p\u003E","format":"limited_html"}],"field_summary_sentence":"","uid":"27511","created_gmt":"2011-12-16 17:17:15","changed_gmt":"2016-10-08 03:10:53","author":"Ashley Daniel","boilerplate_text":"","field_publication":"","field_article_url":"","dateline":{"date":"2011-12-30T00:00:00-05:00","iso_date":"2011-12-30T00:00:00-05:00","tz":"America\/New_York"},"extras":[],"groups":[{"id":"1242","name":"School of Industrial and Systems Engineering (ISYE)"}],"categories":[{"id":"132","name":"Institute Leadership"}],"keywords":[{"id":"1202","name":"H. Milton Stewart School of Industrial and Systems Engineering"},{"id":"170001","name":"Supply Chain Engineering"}],"core_research_areas":[],"news_room_topics":[],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[{"value":"\u003Cp\u003E\u003Ca href=\u0022mailto:barbara.christopher@isye.gatech.edu\u0022\u003E\u003Cstrong\u003EBarbara Christopher\u003C\/strong\u003E\u003C\/a\u003E\u003Cbr \/\u003EIndustrial and Systems Engineering\u003Cbr \/\u003E\u003Cstrong\u003E404.385.3102\u003C\/strong\u003E\u003C\/p\u003E","format":"limited_html"}],"email":[],"slides":[],"orientation":[],"userdata":""}}}