Careers In Supply Chain Management 2004 - Supply Chain Online

Careers in Supply 

Chain Management 

2005 Edition 

WetFeet Insider Guide

The WetFeet Research Methodology 

You hold in your hands a copy of the best-quality research available for job seekers. We have 

designed this Insider Guide to save you time doing your job research and to provide highly 

accurate information written precisely for the needs of the job-seeking public. (We also hope 

that you’ll enjoy reading it, because, believe it or not, the job search doesn’t have to be a pain 

in the neck.) 

Each WetFeet Insider Guide represents hundreds of hours of careful research and writing. We 

start with a review of the public information available. (Our writers are also experts in reading 

between the lines.) We augment this information with dozens of in-depth interviews of people 

who actually work for each company or industry we cover. And, although we keep the identity of 

the rank-and-file employees anonymous to encourage candor, we also interview the company’s 

recruiting staff extensively, to make sure that we give you, the reader, accurate information about 

recruiting, process, compensation, hiring targets, and so on. (WetFeet retains all editorial control 

of the product.) We also regularly survey our members and customers to learn about their 

experiences in the recruiting process. Finally, each Insider Guide goes through an editorial review 

and fact-checking process to make sure that the information and writing live up to our exacting 

standards before it goes out the door. 

Are we perfect? No—but we do believe that you’ll find our content to be the highest-quality 

content of its type available on the Web or in print. (Please see our guarantee below.) We also are 

eager to hear about your experiences on the recruiting front and your feedback (both positive and 

negative) about our products and our process. Thank you for your interest. 

The WetFeet Guarantee 

You’ve got enough to worry about with your job search. So, if you don’t like this Insider Guide, 

send it back within 30 days of purchase and we’ll refund your money. Contact us at 

1-800-926-4JOB or www.wetfeet.com/about/contactus.asp.

Insider Guide 

Careers in Supply 

Chain Management 

2005 Edition 

Helping you make smarter career decisions.

WetFeet, Inc. 

The Folger Building 

101 Howard Street 

Suite 300 

San Francisco, CA 94105 

Phone: (415) 284-7900 or 1-800-926-4JOB 

Fax: (415) 284-7910 

Website: www.WetFeet.com 

Careers in Supply Chain Management 

ISBN: 1-58207-474-7 

Photocopying Is Prohibited 

Copyright 2005 WetFeet, Inc. All rights reserved. This publication is protected by 

the copyright laws of the United States of America. No copying in any form is 

permitted. It may not be reproduced, distributed, stored in a retrieval system, or 

transmitted in any form or by any means, in part or in whole, without the express 

written permission of WetFeet, Inc.

Table of Contents 

Supply Chain Management at a Glance . . . . . . . . . . . . . . . . . . . . . 1 

The Role . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 

The Bottom Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 

Industry Breakdown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 

Industry Rankings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 

Trends in the Field. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 

Picking and Choosing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 

The Companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 

Manufacturing Companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 

Retail Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 

Transportation and Logistics Companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 

On the Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 

The Big Picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 

Salary Ranges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 

Job Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 

Real People Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

The Workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 

Lifestyle and Hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 

Diversity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 

Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 

Career Path. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 

Insider Scoop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 

Getting Hired. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 

The Recruiting Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 

Education, Requirements, and Certification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 

Acing the Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 

Getting Grilled. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 

Grilling Your Interviewer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 

For Your Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 

Supply Chain Management Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 

Articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 

Books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 

Professional Organizations and Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

Supply Chain Management 

at a Glance 

Opportunity Overview 

• Most positions in supply chain management require a specific skill set attained 

through specialized education programs (such as supply chain management 

concentrations) or work experience. 

• Supply chain management professionals have remained in demand through 

the weak economy of the past 3 years. 

• Many professionals saw hiring preferences swing toward industry veterans 

during the past 3 years. 

• The improving economy promises to be a boon for qualified supply chain 

professionals. 

• Undergraduates often start in roles such as business analyst, inventory 

coordinator, or customer service specialist. 

• MBAs and graduate degree holders are often put into management rotations 

across supply chain disciplines or in program management roles. 

• There is significant opportunity for overseas assignments. 

Major Pluses 

• You move real things across oceans and continents. 

• You can problem solve to your heart’s delight. 

• A career in supply chain management doesn’t tie you to a particular geography— 

opportunities are spread throughout the country. 

• Jobs tend to be in low-cost-of-living cities. 

• International assignments are not only available, they are encouraged. 

• Jobs abound across a number of industries. 

1 

At a Glance

At a Glance 

2 

• In addition to traditional manufacturing and distribution firms, a number of 

fast-growing and innovative companies find supply chain management integral 

to their strategy and success. 

• Supply chain managers are well compensated. 

Major Minuses 

• It’s a long road to the top—there aren’t many thirty-somethings with VP or 

even director titles. 

• The educational barriers to entry are high—many positions require specialized 

training such as a degree in supply chain management and often certificates. 

• The opportunities for advancement are not unlimited. Vice president of 

supply chain management is typically as high as one can go. 

• It is somewhat difficult to transfer across industries within the supply chain 

management function. 

• Specialization makes it difficult to transfer across roles within the supply 

chain management function. 

• In some job functions, especially in transportation, the hours can be long and 

unpredictable. 

Recruiting Overview 

• Supply chain management firms typically have structured recruiting programs 

for undergraduate, MBA, and midcareer hires. 

• Companies conduct on-campus recruiting for MBAs in supply chain 

management. 

• Companies conduct on-campus recruiting for business undergraduates with 

specializations in supply chain management. 

• Midcareer candidates with the right skill set will find themselves in high 

demand. 

• MBA opportunities often include a management rotation program. 

• Companies that recruit on campus typically have a set of target schools from 

which they cull candidates.

The Role 

• Overview 

The Bottom Line 

Industry Breakdown 

Industry Rankings 

Trends in the Field 

Picking and Choosing 

3 

The Role

The Role 

4 

Overview 

Behold leaf cutter ants. At the command of their queen, the ants march in 

lockstep, cut leaves from rainforest trees, and, in a perfectly ordered line, carry 

the right number of tasty leaves in their mandibles back to the colony and their 

discerning queen. As a species, humans have no such innate sense of how to 

move products from their source to end users. Supply chain managers seek to 

create what ants do naturally: They attempt to integrate and optimize all the 

steps required to produce the right amount of the right product and deliver it 

to the end user at the right time. In other words, supply chain management 

(SCM) is involved in every aspect of getting products to customers, from raw 

materials to consumption. As an insider defines it, “Supply chain management 

is interested in everything that happens to a product from cradle to grave.” 

Whereas the field of logistics was born in World War II as part of the effort to 

get the right amount of supplies to the troops at the right time, supply chain 

management took the novel approach of looking further back into the life of a 

product to its manufacture and even product design while integrating what were 

once thought of as unrelated disciplines, marketing and customer service. 

The focus of this guide is supply chain management and its constituent functions 

as well as the industries and companies for which supply chain management is 

essential to remain competitive in the marketplace. The industries to which we 

hold the magnifying glass are manufacturing, retailing, and transportation, logistics, 

and distribution. 

In the field of retailing, Wal-Mart, the largest company on the Fortune 500, 

attributes much of its success to the elevation of supply chain management to 

a strategic imperative. By carefully managing its suppliers and distribution prac-

tices, it has been able to reduce its costs and offer its customers products at 

prices far below those of any other retailer. In the manufacturing industry, Dell 

has become the largest computer maker in the world based on the simple conceit 

of eliminating retailers and distributors; in doing so, Dell reduced inventory 

costs on highly obsolescent products. In much the same way, Amazon.com’s 

success is due to its exploitation of inefficiencies in the supply chain for a number 

of categories of goods. Finally, transportation and logistics companies themselves 

revolutionized the way people do business. DHL, for instance, recognized 

that processing of international customs papers in foreign ports would often 

hold up shipments for weeks. It solved this problem by flying customs papers 

ahead of shipments for processing, so when ships would arrive at port, the 

paperwork would already be completed and the ships could be unloaded immediately. 

While supply chain management has had a huge impact on these three 

industries, the SCM function, with roles such as procurement manager, logistics 

analyst, materials manager, warehouse manager, inventory analyst, and of course, 

supply chain manager, remains somewhat unheralded. 

Supply chain management is in some ways one of the best kept secrets of business. 

This is due in part to the specialization of functions within the discipline— 

SCM professionals require substantial training and often spend entire careers 

within a single role such as procurement specialist. Supply chain management’s 

lack of renown is also due to the fact that it is a cross-functional field that 

doesn’t really fit in a single category the way marketing or finance does. 

For their trouble, SCM professionals are typically well compensated. And the 

recruiting picture is currently bright. As the economy emerges from recession, 

companies are looking at increasing investments in supply chain managementrelated 

areas. 

5 

The Role

The Role 

6 

The Bottom Line 

After the economy picked up and real salaries increased in 2003, the outlook 

for supply chain management in 2004 and 2005 looks healthy. However, in the 

case of midcareer job seekers, most companies look for candidates with coursework 

in supply chain management or prior industry and functional experience. 

These prerequisites limit the number of qualified candidates in the field. While 

no role clearly outshines the others in terms of employer demand, more and 

more companies are reorganizing around supply chain management (as opposed 

to logistics or materials) and so supply chain manager roles are becoming more 

prevalent. Clearly, proficiency in an enterprise resource planning (ERP) software 

package such as SAP, Oracle, or i2 greatly enhances your marketability. Look 

for opportunities in burgeoning subsectors such as specialty pharmaceuticals 

and medical device manufacturing. Detail orientation is always a necessity for 

supply chain jobs—you can’t overdo attention to detail when communicating 

with prospective employers, either in informal conversations or during the 

interview process. Finally, because of the cross-functional nature of the field, 

communication and people skills are paramount.

Industry Breakdown 

While many industries use logistics functions, including services such as banks 

and restaurant chains, we have focused our survey on three industries that are 

truly dependent on supply chain management: manufacturing, retail, and logistics 

and transportation companies. 

Manufacturing Companies 

Manufacturing is a broad term. Virtually any process that turns a raw material 

into a finished product through use of a machine can be considered manufacturing. 

If you look around at the objects strewn about the room in which you’re 

currently sitting, you’ll see that quite a few things are manufactured. However, 

we can break down the types of manufacturing based on what companies 

produce or by industry; how they produce them, discrete or flow; and the level 

of engineering effort required to manufacture them. The universe of manufacturing 

includes the galaxies of aerospace and defense, automobile and transportation, 

chemicals and metals, consumer goods, electronics and high tech, industrial 

and farm equipment, and medical and biotech. Generally, sectors that involve 

technology and are less mature—especially biotech and medical manufacturing— 

are high-growth opportunities, whereas those that have reached maturity— 

chemical and metals, for instance—are waning and have seen much of their 

growth exported overseas. Manufacturing companies typically emphasize materials 

management and sourcing functions. Additionally, the majority of overseas 

opportunities reside with manufacturing firms. Though the number is decreasing, 

manufacturers employ the largest number of supply chain professionals. According 

to a recent Ohio State University poll, manufacturing firms employ 76 percent 

of logistics executives (source: The Ohio State University 2003 Survey of Career 

Patterns in Logistics, by Bernard J. La Long and James L. Ginter). 

7 

The Role

The Role 

8 

Retail Companies 

Retailers, in our definition, are the group of merchandisers that sells products 

to end users. Categories of retailers include discount retailers, such as Wal-Mart 

and Target; warehouse formats such as Costco and Sam’s Club; specialty retailers 

such as Gap, Starbucks, and Home Depot; general merchandisers, such as 

Federated Department Stores; and Internet retailers such as Amazon.com. Roles 

within the retail and merchandising industries tend to emphasize logistics, 

warehousing, and inventory management. 

Logistics and Transportation Companies 

Logistics and transportation firms provide all or some portion of logistics and/or 

shipping functions for client firms. Types of logistics firms include asset-based 

carriers such as Canadian National Railway, FedEx, and UPS, non-asset-based 

carriers such as C.H. Robinson and Expeditors International, and warehousing 

firms such as Preferred Freezer Services. Like retailers, the roles of logistics 

firms emphasize (what else?) logistics, inventory management, and warehousing. 

Most larger firms offer the entire range of logistics services from transportation 

and carrier services to warehousing and inventory management.

Industry Rankings 

The following lists show key companies in several industries that rely heavily on 

supply chain management for success—manufacturing, retail, and logistics and 

transportation. 

� 

Top Manufacturing Companies 

Company 2003 Revenue ($M) Employees 

General Motors 185,524 326,000 

General Electric 132,890 305,000 

IBM 89,131 255,157 

Altria Group 81,832 165,000 

Hewlett-Packard 73,061 142,000 

Nestlé S.A. 70,823 253,000 

BMW 52,122 104,342 

Procter & Gamble* 51,407 110,000 

Pfizer 45,188 122,000 

Johnson & Johnson 41,862 110,600 

Microsoft 36,835 57,000 

Dell Inc.* 41,444 46,000 

Intel Corporation 30,141 79,700 

Nike, Inc.* 12,253 24,667 

Solectron Corporation 11,014 66,000 

*2004 figures. 

Sources: Hoover’s; WetFeet analysis. 

9 

The Role

The Role 

10 

� 

Top Retail Companies 

Company 2004 Revenue ($M) Employees 

Wal-Mart Stores, Inc. 256,329 1,500,000 

Home Depot, Inc. 64,816 299,000 

Kroger 53,791 290,000 

Target 48,163 328,000 

Costco 48,107 103,000* 

Lowe’s 30,838 147,000 

Best Buy 24,547 100,000 

Kmart 23,253 158,000 

J.C. Penney 17,786 147,000 

Gap Inc. 15,584 153,000 

Federated Department Stores 15,264 111,000 

Staples 13,181 60,633 

Office Depot* 12,359 46,000 

Amazon.com* 5,264 7,800 

Starbucks* 4,076 74,000 

*2003 figures. 

Sources: Hoover’s; WetFeet analysis.

� 

Top Transportation and Logistics Companies 

Company 2003 Revenue ($M) Employees 

U.S. Postal Service 68,529 826,955 

United Parcel Service 33,485 355,000 

DHL 27,571 160,754 

FedEx* 24,710 195,838 

Union Pacific Corp. 11,551 46,400 

CNF 5,104 26,000 

Ryder System 4,802 26,700 

Canadian National Railway Co. 4,568 21,489 

C.H. Robinson Worldwide 3,614 4,112 

Schneider National 2,900 20,733 

J.B. Hunt 2,434 15,700 

*2004 figures. 


11 

The Role

The Role 

12 

Trends in the Field 

We compiled the following trends through our research and by polling insiders 

on what they think are the biggest developments in their field. 

RFID 

Radio frequency identification, or RFID, promises to be a transforming technology 

for supply chain management. RFID is a system of tags (small chips 

embedded in products) and readers that decode information. In RFID, a tag is 

encoded with information about a product. As a reader passes by a tag, it emits 

a radio signal that stimulates the tag and momentarily powers it, allowing it to 

send back data. A reader can also update a tag with information. Similar technology 

is used in FastPass and E-ZPass cards and readers in tollbooths on the East 

and West Coasts. The potential uses for RFID include providing increased information 

about products, auditing of products through the supply chain by automatically 

adding data to a card every time it’s read, and eventually supplying 

better data on consumer purchases. Wal-Mart has announced that it will require 

its top vendors to use RFID at the pallet level. 

Consumer advocate and privacy groups are protesting the use of RFID due to 

fears that the technology will be used to track consumers in ways they do not 

want or cannot imagine.

Six Sigma Quality 

According to General Electric (GE), Six Sigma is a “disciplined methodology 

of defining, measuring, analyzing, improving, and controlling the quality in 

every one of the company’s products, processes, and transactions—with the 

ultimate goal of virtually eliminating all defects.” Sigma is the Greek symbol 

for standard deviation. Six Sigma refers to controlling a process to six standard 

deviations, which translates into 3.4 defects per million, or in other words, a 

maniacal focus on quality. 

Bill Smith, a reliability engineer at Motorola in the early 1980s, developed Six 

Sigma. During routine testing, Smith saw that products were failing at a much 

higher rate than was predicted. He hypothesized that increased system complexity 

might be the cause of the failure. His solution was to build controls into the 

system so the process could be measured and acted on before a final product 

was produced. He convinced Motorola management to adopt the program, and 

the rest is history. Six Sigma is still proliferating throughout both manufacturing 

and retail organizations. It is somewhat strange that an industry obsessed with 

precision would take so long to adopt the methodology. Nevertheless, employers 

are seeking Six Sigma experience at the analyst level and higher. 

Lean Manufacturing 

Lean manufacturing was developed by Toyota and its Toyota Production System 

more than a decade ago. Traditional manufacturing methodologies stress high 

utilization of machinery with slim regard for cycle time or manufacturing waste. 

Lean manufacturing, on the other hand, stresses reduced cycle times and waste. 

Cycle time refers to the amount of time that it takes to complete a set of operations. 

So, in lean manufacturing, the goal is not to push more goods through 

a process—say the painting area of an automobile assembly line—but rather to 

13 

The Role

The Role 

14 

develop a better process. Similarly, lean manufacturing attacks root causes by 

identifying seven wastes: overproduction, transportation, motion, waiting, processing, 

inventory, and defects. 

Expanded Outsourcing 

Though contract manufacturing is not a new concept, its scope continues to 

increase. Companies such as Solectron and Flextronics already manufacture 

computers and electronics for companies such as HP, Cisco, and Apple. Now, 

however, these companies are seeking to expand by tapping new markets, such 

as consumer electronics and automobile parts, and adding supply chain and 

materials management services to their offerings. Within the automotive industry, 

companies like BMW are already experimenting with outsourced production.

Picking and Choosing 

Once you’ve decided to pursue a career in supply chain management, the 

following considerations will help you narrow down your choices in terms of 

function, geography, industry, and company. 

You Are What You Make or Sell 

What a company builds or sells, quite obviously, will tell you a lot about the 

company you’re going to work for. Since people go into supply chain management 

at least partly because they are excited by the prospect of working with 

tangible products, it makes sense that you should know, be comfortable with, 

and even excited by what your firm makes or sells. Specialty manufacturers 

tend to hire people with an interest in their products—an athlete might work 

at Nike, a bibliophile at Amazon.com, a fashionista at Gap. Of course, some 

companies, such as Raytheon and Boeing, make bombs—so if you have moral 

qualms about making weapons, you should consider working at one of the 

many other companies that employ supply chain professionals. 

What the company makes also has a bearing on what kind of culture the company 

embraces. At least in part, companies embrace the culture that their product 

suggests. Therefore, a sports apparel seller might have a playful, outdoorsy 

culture. Medical product manufacturers demand a high degree of ethics from 

their workers—after all, their products are involved in life and death matters. 

Companies with technically complex and novel (i.e., ones whose technology is 

new) products tend to have cultures that are looser and that try to foster a 

greater sense of creativity than more established companies. Discount retailers 

tend to inculcate their workers with, if not exactly parsimony, a cost-cutting 

15 

The Role

The Role 

16 

ethos. “Our sense of thrift was so strong,” says one grocery industry insider, 

“that the CFO and I shared a hotel room when we’d go on site visits.” 

Size Matters 

The size of companies in the manufacturing, retail, and logistics industries 

varies dramatically, from behemoths perennially among the very largest companies 

in the country (and world) to startups with handfuls of employees, and 

everything in between. This variance in size corresponds to an equally large 

range of opportunities, career paths, and workplace environments that are open 

to you. The largest firms, such as Wal-Mart, GE, and General Motors, offer 

structured management training programs and the ability to move through a 

number of roles. GE is known as one of the top management training grounds 

anywhere, as is Procter & Gamble. Small companies offer the excitement of a 

startup coupled with the ability to move up the org chart more quickly. 

Location, Location, Location 

Supply chain jobs are located around the country, and even around the world, 

so picking an industry sector can draw you into a particular region of the country. 

The headquarters of automotive giants are huddled around Detroit; aerospace 

manufacturers hang their hats in the Southwest; medical and specialty 

electronics manufacturers find themselves near the brain trust of Cambridge, 

Massachusetts, and other college towns; traditional manufacturers are strewn 

throughout the Northeast—the Rustbelt; retailers tend to be located in the 

Southwest and Midwest; pharmaceutical companies in New Jersey; and technology 

companies in Silicon Valley and Boston. Many logistics companies are 

headquartered in the Midwest or Eastern United States. Remember that FedEx 

chose Memphis as its first hub not because of the blues or barbeque, but because 

of its proximity to most major U.S. markets—Memphis is just an overnight

truck drive from 75 percent of the souls residing in the United States. Memphis 

has since marketed itself as “America’s Distribution Center.” Other logistics 

powerhouses also operate out of the Midwest: Union Pacific calls the shots 

from Omaha, Nebraska; C.H. Robinson from Eden Prairie, Minnesota; Schneider 

National from Green Bay, Wisconsin. And Canadian National Railway, which 

operates from coast to coast and from Canada to the Gulf of Mexico, has its 

U.S. headquarters in Illinois. Additionally, many major companies such as Nike 

and HP operate distribution centers out of noted transportation hubs such as 

Memphis. Because switching industries is not the simplest of endeavors in 

supply chain, selecting your industry/location carefully can save you a lot of 

headaches in the long run. 

Make, Sell, or Send 

Manufacturing, retail, and logistics firms all have different versions of supply 

chain management. In general, manufacturing firms tend to stress the materials 

and purchasing aspects of the field, whereas retailers and merchandisers tend to 

stress warehousing and logistics. As the name implies, logistics firms focus on 

the procurement, maintenance, and transportation aspects of the supply chain. 

People or Numbers 

Although most disciplines within supply chain management require a strong 

analytical facility and strong people skills, the mix of skills varies significantly 

across roles. Candidates who are practical and have superb people skills should 

consider warehouse or transportation management roles. Candidates who are 

strong negotiators would do best in a vendor management–type role such as 

purchasing manager, whereas those who are highly analytical do best in a role 

such as inventory specialist. Those who excel at both analysis and communication 

and leadership can do well in the supply chain manager role. 

17 

The Role

The Companies 



Transportation and Logistics Companies 

19 

The Companies

The Companies 

20 

The companies profiled here represent a sampling of top companies that rely 

heavily on supply chain management to succeed: manufacturing, retail, and 

transportation and logistics companies. We chose companies in each category 

based on the company’s size, growth prospects, financial health, desirability as 

a place to work, and reputation for hiring supply chain professionals.


Altria Group, Inc. 

120 Park Avenue 

New York, NY 10017 

Phone: 917-663-4000 

www.altria.com 

Overview 

Philip Morris may have changed its name to highlight the fact that it’s more 

than a cigarette maker, but the company still gets more than 60 percent of its 

income from domestic and international tobacco operations. Altria’s tobacco 

empire includes the Marlboro, Virginia Slims, Benson & Hedges, Parliament, 

Chesterfield, and Basic cigarette brands. The remaining 40 percent of Altria’s 

income comes primarily from its Kraft Foods operations, which is the secondlargest 

food company in the world after the European behemoth Nestlé. Kraft 

Foods major brands include Kraft, Maxwell House, Oscar Mayer, Nabisco, 

Philadelphia, Jacobs, and Post Cereals, to name (more than) a few. Additionally, 

Altria owns a 36 percent stake in SABMiller plc, the second-largest brewer in 

the world and maker of such brands as Miller Lite, Pilsner Urquell, and Peroni. 

Philip Morris officially changed its name to the Altria Group in January of 2003. 

The group serves as an umbrella organization for Philip Morris USA, Philip 

Morris International, Kraft Foods, and Philip Morris Capital. Philip Morris and 

Kraft trade under separate ticker symbols (MO and KFT, respectively). Philip 

Morris conceived of the split between tobacco and food operations in 2001, as 

21 

The Companies

The Companies 

22 

tobacco litigation was reaching a peak. The obvious rationale behind the split 

was to shield food operations from the drag of tobacco litigation. Domestic 

suits against all tobacco makers currently stand at nearly $250 billion in penalties. 

In a June 2003 lawsuit in Illinois, a judge ordered Philip Morris to pay $10 billion 

in damages and post a $12 billion bond. The company appealed the verdict and 

the bond was lowered. This scenario has been repeated time and again in the 

tobacco industry, and Altria’s phalanx of legal counselors has kept juries from 

bankrupting the company. 

� 

Key Numbers 

2003 2002 Change (%) 

Worldwide Revenue ($M) 81,832 80,408 2 

Worldwide Earnings ($M) 9,204 11,102 –17 

Number of Employees 165,000 166,000 –1 


Recent Milestones 

2004 Kraft Foods acquires Veryfine Products. 

Philip Morris USA announces it will close Louisville, Kentucky, facility 

in 2006. 

Philip Morris USA announces that it will appeal a verdict by a New 

Orleans jury ordering the nation’s major cigarette manufacturers to pay 

some $590 million for a smoking cessation program in Louisiana. 

Oregon court reinstates punitive award against Philip Morris USA. 

California class-action suit alleging that Philip Morris USA markets to 

minors is dismissed.

2003 Phillip Morris USA ordered to post a $12 billion bond by an Illinois 

court for dispute of labeling of “light” cigarettes; bond later reduced. 

Florida appeals court throws out multi-billion-dollar judgment against 

Altria Group. 

Officially changes name to Altria Group, Inc. 

2002 Sells majority interest in Miller Brewing to South African Breweries. 

2001 Spins off Kraft Foods while retaining 84 percent interest in the 

company. 

23 

The Companies

The Companies 

24 

Bayerische Motoren Werke AG (BMW) 

Petuelring 130 

D-80788 Munich, Germany 

Phone: +49-89-382-0 

www.bmw.com 

U.S. Headquarters: 

BMW of North America, LLC 

300 Chestnut Ridge Road 

Woodcliff Lake, NJ 07677 

Phone: 201-307-4000 

Overview 

The motors that BMW’s middle initial stands for started off not as the automobile 

and motorcycle motors for which the company is now famous, but for 

the motors that spun the propellers on aircraft. The blue and white fields of 

the firm’s logo, a stylized version of a propeller spinning, attest to this. Nowadays, 

the company’s reach extends far beyond the BMW name. It not only owns the 

BMW brand, but also Rolls Royce and MINI. Though BMW has had the rights 

to the Rolls Royce name since 1998, it only began producing the cars itself in 

2003; before then, Volkswagen produced the famed luxury sedans. BMW began 

producing automobiles in the United States in 1995 with the opening of its 

Spartanburg, South Carolina, plant. The plant, in which BMW pumped $800 

million, spits out Z3, M, and X5 models. Overall company car production was 

more than 1,100,000 units in 2003, including both the BMW and MINI brands. 

More than half of those sales were made up of the company’s 3 Series models. 

Not bad for a company that started the post–World War II years making threewheeled 

vehicles.

� 

Key Numbers 


2003 2002 Change (%) 


Worldwide Earnings ($M) 2,444 2,117 15 

Number of Employees 104,342 101,395 3 


2004 Sets nine records for hydrogen combustion-engine cars; engine excels in 

excess of 300 km/hour. 

2003 Begins production of Rolls Royce cars in Goodwood, England. 

2002 Takes control of Rolls Royce. 

2001 Launches MINI brand in the United Kingdom. 

25 

The Companies

The Companies 

26 

Dell Inc. 

1 Dell Way 

Round Rock, TX 78682 

Phone: 512-338-4400 

www.dell.com 

Overview 

Well ingrained in corporate mythology is the story of Michael Dell, student at 

the University of Texas at Austin, selling made-to-order computers from his 

dorm room and turning that model into a multi-billion-dollar corporation. 

Indeed, the company bearing Michael Dell’s name has become the foremost 

PC maker in the world, with Mr. Dell still retaining approximately 12 percent 

of the company. Dell Inc., formerly known as Dell Computer, is still one of the 

largest computer makers in the world. However, as the name change implies, 

Dell is attempting to parlay its brand name and direct channel experience into 

consumer electronics. Consider the new Dell flat-panel television and the Dell 

DJ MP3 player the baby steps in this direction. Within the realm of computers, 

Dell offers not only laptop and desktop PCs, but also software, accessories, 

servers, storage devices, and, more recently, Dell-branded printers and handheld 

computing devices. Dell ranks 31st on the Fortune 500 (2004) as well as near 

the top of Fortune’s 2004 list of “America’s Most Admired Companies.”

� 

Key Numbers 


2004 2003 Change (%) 





2004 Michael Dell steps down as CEO, remains chairman of the board. 

2003 Drops “Computer” from company name. 

Enters the consumer electronics market with a flat-screen LCD television. 

2002 Buys software support company Plural. 

2001 Begins reselling EMC storage equipment. 

27 

The Companies

The Companies 

28 

General Electric Company 

3135 Easton Turnpike 

Fairfield, CT 06828 

Phone: 203-373-2211 

www.ge.com 

Overview 

General Electric is the grandfather of all electronics companies and one of the 

most recognized brand names in the world, tracing its origins back to Thomas 

Edison. Nevertheless, GE is known throughout the world as the house that Jack 

built—Jack Welch, that is. The corporate giant that Welch made into an empire 

includes the subsidiaries GE Capital Corporation, one of the world’s largest 

financial services companies and itself divided into four units (GE Commercial 

Finance, GE Consumer Finance, GE Insurance, and GE Equipment Management); 

GE Appliances, known for its “we bring good things to life” advertising campaign; 

the National Broadcasting Company (NBC); GE Aircraft Engines; GE 

Consumer Products; GE Industrial Systems; GE Medical Systems, an $8 billion 

company; GE Plastics; GE Power Systems; GE Specialty Materials; and GE 

Transportation Systems. 

Under former CEO Jack Welch, this empire grew to be the largest company by 

market capitalization in the stock markets and spawned a veritable industry in 

leadership the Jack Welch Way—a style that stressed letting the best managers 

prove themselves and letting go of underperformers before they became deadwood, 

a strategy that catapulted the company to the number one or two spot 

for all of its business units. This adoration of Welch’s tactics has subsided in 

recent years as public scrutiny focused on his GE retirement package, which 

included all-expense-paid use of the company’s swank Manhattan apartment 

and the company jet—both of which came to light during the divorce filings

of Welch’s second wife, Katherine Beasley Welch. Current CEO Jeff Immelt, 

Welch’s handpicked successor, has done an admirable job of keeping GE’s ship 

(powered of course by GE engines) on course. 

� 

Key Numbers 

2003 2002 Change (%) 






2004 GE spin-off Genworth Financial goes public. 

Simplifies organizational structure into 11 operating segments (from 13+). 

2003 Announces plans to acquire Vivendi’s media holdings, which include 

Universal Studios and USA Networks. 

2001 Jeff Immelt, former president and CEO of GE Medical Systems, replaces 

Jack Welch as CEO of GE. 

Purchases Heller Financial for $5.3 billion. 

European regulators block GE’s attempt to acquire Honeywell International. 

29 

The Companies

The Companies 

30 

General Mills, Inc. 

1 General Mills Boulevard 

Minneapolis, MN 55426 

Phone: 763-764-7600 

www.generalmills.com 

Overview 

One of the largest food companies in the world, General Mills is the nation’s 

second-largest cereal maker after Kellogg. The company is a global food powerhouse, 

with more than 100 consumer brands in the United States, operations 

in more than 30 countries around the world, and exports to 90-plus countries. 

General Mills has organized itself into nine major business units: Big G Cereals, 

Meals, Snacks, Yoplait-Colombo, Pillsbury, Small Planet Foods, Bakeries and 

Food Service, and International. The company’s brands include not only those 

that festoon the commercial space of Saturday morning cartoons (Wheaties, 

Honey Nut Cheerios, Lucky Charms, Kix, Fruit Roll-Ups), but also Betty 

Crocker, Pillsbury, Muir Glen, Cascadian Farms, and Häagan-Dazs. 

� 

Key Numbers 



Worldwide Earnings ($M) 1,055 917 15 




2004 Announces plan to cut 20 percent of its product lines and focus on 

healthier, more convenient products. 

Sells Häagen-Dazs ice cream shop franchise business in United States. 

2002 Loses lead to Kellogg as largest cereal maker in the United States. 

2001 Purchases Pillsbury from Diageo. 

Becomes largest cereal maker in the United States. 

31 

The Companies

The Companies 

32 

General Motors Corporation 

300 Renaissance Center 

Detroit, MI 48265 

Phone: 313-556-5000 

www.gm.com 

Overview 

General Motors (GM) has been mass-producing cars since 1901 and now 

distinguishes itself as the largest U.S. exporter of cars and trucks, with operations 

in more than 190 countries, and the largest automobile manufacturer in 

the world. GM says it was the first to offer a closed body as standard equipment 

(1910), use an electric self-starter (1911), offer a comprehensive service 

policy (1926), develop the built-in trunk (1933), and offer an electric vehicle to 

consumers (1996). Along with brands commonly associated with GM—Cadillac, 

Chevrolet, GMC, and Pontiac—some of the less apple-pie brands under the 

GM umbrella include Saab and Saturn, not to mention stakes in Fiat, Subaru, 

and Suzuki. The company is also returning its new-product development focus 

from trucks to cars. Indeed, GM recently announced plans to sell small cars 

developed in a joint venture with Daewoo in North America. GM also makes 

locomotives and heavy-duty transmissions, and General Motors Acceptance 

Company (GMAC) is its financing arm.

� 

Key Numbers 


2003 2002 Change (%) 

Worldwide Revenue ($M) 185,524 186,763 –1 




2004 Announces it’s moving its Asia-Pacific HQ from Singapore to Shanghai. 

Oldsmobile brand is retired. 

2003 Announces sale of its armored vehicle unit to General Dynamics for 

$1.1 billion. 

Sells its 20 percent stake in Hughes Electronics to Rupert Murdoch’s 

News Corp. 

2002 Fiat sells its stake in GM (which it got in exchange for GM’s stake in 

Fiat in 1999) to an investment bank to raise cash. 

2000 Announces that it will phase out Oldsmobile brand. 

33 

The Companies

The Companies 

34 

International Business Machines Corporation (IBM) 

New Orchard Road 

Armonk, NY 10504 

Phone: 914-499-1900 

www.ibm.com 

Overview 

IBM, number 9 on the 2004 Fortune 500 list of the largest companies in the 

United States, is also the largest information technology company in the world. 

The company, founded by NCR’s Thomas Watson in 1914, underwent something 

of a resurrection in 1993 when Louis Gerstner, an outsider with credentials 

in the financial services industry, took the company’s helm. Under Gerstner, 

IBM, which had been known for giving away the spoils of the PC revolution to 

Microsoft, returned to profitability and even growth. While the company built 

its reputation on monolithic mainframe computers (which inspired HAL, a play 

on IBM, in 2001, A Space Odyssey), the company is betting its future on software 

and services. Indeed, the company is the world’s second-largest software maker, 

largely through the acquisition of enterprise software companies such as Lotus 

Development, CrossWorlds Software, Tivoli Systems, and Informix. Moreover, 

the company fortified its services business with the purchase of PwC Consulting, 

formerly the management and IT consulting arm of PricewaterhouseCoopers, 

in 2002.

� 

Key Numbers 


2003 2002 Change (%) 





2004 Announces acquisition of Daksh eServices, an Indian call-center company. 

Announces acquisition of the Business Continuity Services unit of 

Schlumberger. 

Ranked among Fortune’s “100 Best Companies to Work For” as well as 

Working Mother’s list of the “Best Companies for Women of Color.” 

2002 Touts savings of $5 billion in 2002 with its on-demand supply chain 

e-business. 

Sam Palmisano succeeds Louis Gerstner as CEO. 

Purchases PwC Consulting for $3.5 billion. 

35 

The Companies

The Companies 

36 

Intel Corporation 

2200 Mission College Boulevard 

Santa Clara, CA 95052 

Phone: 408-765-8080 

www.intel.com 

Overview 

It’s Intel all over when it comes to computer chips. Intel, the “Tel” in WinTel, 

became the largest semiconductor company in the world by focusing on the PC 

industry. Founded when three mavericks, Bob Noyce, Andy Grove, and Gordon 

Moore, departed Fairchild Semiconductor in 1968, Intel is something of the 

granddaddy of all technology startups. The legendary Andy Grove stepped 

down as CEO in 1998, starting the reign of Craig Barrett (though Grove remains 

chairman of the board). Today, nearly four in five new computers have Intel 

inside. Moreover, the company is the world’s largest maker of flash memory 

and a major player in the embedded chip and communications chip markets. 

Within the PC CPU market, the company’s Pentium line has kept distant rival 

AMD eating its dust for decades. More recently, Intel has been moving toward 

a 64-bit architecture chip so that it can better compete in the market for highend 

processors. Intel partnered with HP to develop its 64-bit chip with the 

brand name Itanium. Other recent product introductions include the Centrino 

chip, which is designed specifically for mobile computing and contains a builtin 

wireless radio device. To maintain its lead in the semiconductor industry, 

Intel spends vast sums on new manufacturing.

� 

Key Numbers 


2003 2002 Change (%) 





2004 Introduces 64-bit-compatible models in its Pentium Xeon server 

processor line. 

Announces it will add a production plant in Ireland at a cost of $2 

billion. 

2003 Launches Centrino mobile chip with power management and wireless 

features. 

2002 Converts manufacturing from 200-mm wafers to 300-mm wafers, 

reducing manufacturing costs by as much as 30 percent. 

2001 Announces that it will discontinue consumer electronics business. 

37 

The Companies

The Companies 

38 

Johnson & Johnson 

1 Johnson & Johnson Plaza 

New Brunswick, NJ 08933 

Phone: 732-524-0400 

www.jnj.com 

Overview 

Though perhaps most noted by the brands we know from childhood—Band- 

Aid and Johnson’s Baby Shampoo—Johnson & Johnson operates in a number 

of health product areas, making it one of the largest health-care product companies 

around. Overall, the corporation consists of more than 200 operating 

companies in 50 countries. J&J operates through three business units: consumer 

products, medical devices, and pharmaceuticals. The company’s cash cow is the 

anemia drug Procrit; the product accounts for 12 percent of the company’s 

revenue. J&J is also the world’s largest maker of contact lenses. More recently, 

the company has placed its chips on a biotechnology future, as evidenced by 

many of its recent acquisitions (see “Recent Milestones”). 

The company’s accolades include being named to Fortune’s “Most Admired 

Companies” (2004), the best reputation in corporate America according to a 

Wall Street Journal poll (2003), and a fourth-place ranking among BusinessWeek’s 

“Best Performing Companies.”

� 

Key Numbers 


2003 2002 Change (%) 





2004 FDA approves Topamax for migraine headaches. 

Acquires Egea Biosciences. 

2003 Acquires OraPharma, a specialty pharmaceutical firm, and Scios, a 

cardiovascular biopharmaceutical firm. 

2002 Acquires Tibotec-Virtec, an antiviral drugmaker. 

2001 Acquires ALZA Corporation, a medical technology company. 

39 

The Companies

The Companies 

40 

Nestlé S.A. 

Avenue Nestlé 55 

CH-1800 Vevey, Vaud, Switzerland 

Phone: +41-21-924-21-11 

www.nestle.com 


800 North Brand Boulevard 

Glendale, CA 91203 

Phone: 818-549-6000 

www.nestleusa.com 

Overview 

The world’s largest food company, Nestlé puts hundreds of familiar brands in 

front of consumers every day. The company with headquarters on the shores 

of Lake Geneva is Switzerland’s largest industrial company. Its empire encompasses 

508 factories worldwide and employs more than 250,000 people. The 

company is divided into six product groups: beverages; milk products, nutrition, 

and ice cream; prepared products and cooking aids; chocolate, confectionary, 

and biscuits; pet care; and pharmaceutical products. Its largest divisions, beverages 

and milk products, each contribute approximately 26 percent to the company’s 

top line. Prepared products contributes approximately 18 percent to the top 

line, chocolates and pet care 12 percent each, and pharmaceutical products 

about 6 percent. 

The company has been global for some time—the company was operating in 

16 countries in 1875, just 3 decades after it was founded by Henri Nestlé. Today, 

the company operates in more than 70 countries. Nestlé’s blockbuster worldwide 

brands include Buitoni, Friskies, Maggie, and Nestea. Nestlé is also the

largest seller of coffee and water to consumers. Its coffee and water brands 

include Nescafé, Perrier, and Taster’s Choice. In addition to its food brands, 

Nestlé owns a 75 percent stake in Alcon, Inc., an eye-care products company. 

The company has been extending its grasp through joint ventures, including a 

50-50 deal with Colgate-Palmolive to develop teeth-whitening candies and a 

skin care and cosmetics venture with L’Oreal. Always looking to optimize its 

portfolio of companies, the Swiss giant disposed of its Ortega Mexican foods 

brand in 2003. The Nestlé USA subsidiary contributes more than $11 billion to 

Nestlé’s top line, and Nestlé’s operations in the United States include 51 manufacturing 

facilities, five distribution centers, and 11,000 employees. 

� 

Key Numbers 

2003 2002 Change (%) 



Worldwide Employees 253,000 254,199 –1 



2004 Sells its cocoa processing facilities in Germany and the United Kingdom. 

Acquires Valiojäätelö ice cream business from Finnish dairy company. 

2003 Deal authorized to acquire Dreyer’s. 

Buys Hutchison Whampoa’s water business Powwow. 

Acquires ice-cream products of Swiss food company Mövenpick Group. 

2001 Purchases Ralston Purina for $10.3 billion. 

41 

The Companies

The Companies 

42 

Nike, Inc. 

1 Bowerman Drive 

Beaverton, OR 97005 

Phone: 503-671-6453 

www.nike.com 

Overview 

Whatever “it” is, Nike just does it—and does it well. Nike, named after the 

Greek goddess of victory, has been smiled upon by the gods as it has become 

the world’s largest shoemaker, athletic and otherwise. People in more than 200 

countries worldwide buy Nike products. Nike has its origins, appropriately 

enough, at Hayward Field of the University of Oregon. It was there that Phil 

met Bill, Phil being Phil Knight, a runner and future leader of Nike, and Bill 

being Bill Bowerman, a legendary track coach. The two went on to found the 

company now known as Nike. They haven’t looked back since: Nike has made 

Phil Knight a very wealthy runner; he still owns more than 80 percent of the 

firm. Nike’s share of the U.S. athletic shoe market hovers around 20 percent. 

The company has since expanded from sports into clothing, equipment, and 

consumer products as well as retail with its NikeTown stores. Nike’s products 

include sports watches, digital music players, and sunglasses. Beyond the Nike 

brand, the company owns Bauer Hockey equipment; former athletic shoe rival 

Converse; Hurley International, a teenage apparel company; and staid shoe 

manufacturer Cole Haan. Nike’s retail empire includes more than 80 Nike 

Factory Outlets, 17 NikeTown stores, and two NIKEgoddess boutiques. 

Nike’s victory has, to an extent, come through offshore manufacturing. Approximately 

14 percent of its manufacturing is done within the United States, with 

the remaining 86 percent scattered throughout 33 countries around the world. 

Nike was slammed by human rights groups in the 1990s for what the groups

labeled exploitive labor practices. The firm responded by starting up microenterprise 

programs to grow sustainable locally owned businesses in 1997. It 

also set up a code of conduct for its offshore suppliers and a compliance monitoring 

program to ensure that its policies would be enforced. Nike’s domestic 

distribution primarily happens in Memphis, where it has two facilities with more 

than 2 million square feet of warehouse space. Its other distribution facility is 

in soggy Oregon, adding an additional 540,000 square feet of distribution space 

to the company’s larder. 

� Key Numbers 


The 


Worldwide Earnings ($M) 946 1,006 –6 

Worldwide Employees 24,667 23,300 6 

Companies 



2004 Closes Paris operations. 

2003 Acquires shoemaker Converse (maker of the ubiquitous Chuck Taylor 

hightops). 

2002 Acquires Hurley International, a sports apparel distributor. 

2001 Opens first NIKEgoddess store. 

43

The Companies 

44 

The Procter & Gamble Company 

1 Procter & Gamble Plaza 

Cincinnati, OH 45202 

Phone: 513-983-1100 

www.pg.com 

Overview 

Procter & Gamble is the undisputed king of consumer-packaged goods, the 

force behind Charmin, Folgers, Crest, Oil of Olay, Scope, Tampax, and Wella. 

P&G markets more than 300 products in 140 countries. Back in the United 

States, P&G is the largest marketer of packaged goods. The once family-run 

soap and candle maker now includes 13 brands in its portfolio that sell more 

than $1 billion in revenue each year. P&G divides its brands across six lines of 

business: house and home, personal and beauty, baby and family care, health 

and wellness, snacks and beverage, and pet nutrition and care. Additionally, 

P&G is the soap behind soap operas; the company still produces Guiding Light 

and As the World Turns. 

The company isn’t content to rest on its soapy laurels though. It constantly 

tweaks its portfolio of brands, adding pet food giant Iams in 1999, Clairol in 

2001, and German beauty products maker Wella in 2003, while divesting itself 

of Crisco and Jif in 2002. In addition to cultivating top brands, P&G is known 

as a management training ground for top marketing and operations professionals; 

it generates the best marketers in the world. Procter & Gamble’s meritocratic 

culture has not gone unnoticed. It regularly scores high in business publications’ 

workplace-quality and employee-happiness rankings.

� 

Key Numbers 







2004 Reorganizes, reducing number of lines of business from five to three. 

Sues Coca-Cola, alleging that Minute Maid fruit drinks infringe on P&G 

patents. 

2003 Purchases German hair-care giant Wella for more than $5 billion. 

2002 Divests Jif and Crisco brands to J.M. Smucker. 

Announces completion of 2-year reorganization. 

2000 Alan Lafley, an executive from within the P&G ranks, becomes CEO. 

45 

The Companies

The Companies 

46 

Solectron Corporation 

777 Gibraltar Drive 

Milpitas, CA 95035 

Phone: 408-957-8500 

www.solectron.com 

Overview 

Behind nearly every great technology brand there is a manufacturing and supply 

chain company you may never have heard of: Solectron. Solectron manufactures 

hardware for companies such as HP, IBM, Apple, Ericcson, Sony, Nortel, Sun, 

and Cisco as well as provides supply chain and service operations for companies 

such as Dell. The tech giants concentrate their efforts on design and marketing; 

Solectron does the hands-on manufacturing, and often support, for those companies. 

While Solectron earned its stripes in contract manufacturing for the 

computer and communications markets, it has sought to expand business to 

new markets using its supply chain and manufacturing expertise. New markets 

for Solectron include automotive and automotive parts manufacturing, 

consumer products, and semiconductor equipment. 

While the company was the first to win the Malcolm Baldrige National Quality 

Award twice (though the award may be something of an albatross—Florida 

Power and Light went bankrupt after receiving it), the company has suffered 

from a prolonged technology downturn. It has sustained losses in recent years, 

trimmed its workforce, and closed plants to help stem the tide.

� 

Key Numbers 


2003 2002 Change (%) 


Worldwide Earnings ($M) –3,462 –3,110 –11 



2004 Divests Stream International call center business and SMART Modular 

Technologies subsidiary. 

2003 Former Maxtor CEO Mike Cannon becomes president and CEO. 

2002 Purchases Magnetic Data Technologies, a service and support company. 

2001 Acquires CRM and support company Stream International. 

Acquires C-MAC Industries, a Canadian electronics manufacturer, for 

$2.7 billion. 

47 

The Companies

The Companies 

48 


Amazon.com, Inc. 

1200 12th Avenue South, Suite 1200 

Seattle, WA 98144 

Phone: 206-266-1000 

www.amazon.com 

Overview 

Like the river for which it is named, Amazon.com is a powerful force in the 

world of online retailing. Jeff Bezos’s creation, which started out as the world’s 

largest bookstore, has become a virtual department store, selling not only books, 

CDs, and DVDs, but also consumer electronics, drugs, clothing, and nearly 

anything else you can think of. Like Dell with computers, the direct model gives 

Amazon.com amazing velocity. By reducing time in inventory, the company 

reduces inventory costs and losses due to obsolescence. Additionally, the company 

reduces its capital requirements by eliminating retail outlets. Amazon touts 

inventory turns of nearly 20 times per year, three times that of Wal-Mart, quadruple 

that of Home Depot, and double that of Costco (source: Amazon Analyst 

Presentation). Additionally, Amazon.com has leveraged its infrastructure to host 

third-party stores, most recently in the category of gourmet foods and syndicated 

stores, such as Target. In addition to adding selection and categories, 

Amazon.com continues to add features to its website, most notably the “Search 

Inside the Book” feature added in October 2003, which allows users to search 

for text contained inside a book.

� 

Key Numbers 


2003 2002 Change (%) 


Worldwide Earnings ($M) 35 –149 n/a 



2004 Launches a9.com, a search engine for searching e-commerce sites. 

Announces acquisition of Joyo.com, owner of Chinese online retail sites. 

2003 Launches “Search Inside the Book” feature. 

2002 Introduces clothing lines from such retailers as Nordstrom and Gap. 

2001 Purchases assets of Egghead.com 

A flaccid economy forces Amazon.com to trim 15 percent of its workforce 

and undergo a massive restructuring. 

49 

The Companies

The Companies 

50 

Best Buy Co., Inc. 

7601 Penn Avenue South 

Richfield, MN 55423 

Phone: 612-291-1000 

www.bestbuy.com 

Overview 

Best Buy came to be in 1981, when Richard Schulze liquidated the inventory of 

his electronics store “Sound of Music,” which had been ravaged by a tornado. 

Best Buy, which displays a yellow sale-like tag on all its items, lures in consumers 

with the promise of a wide selection at low prices. Schulze further innovated by 

taking sales staff off commission and reducing their numbers and by developing 

a warehouse format. Taken together, this formula has succeeded in propelling 

Best Buy to become the nation’s largest consumer electronics retailer, ahead of 

number-two Circuit City. Best Buy’s empire includes approximately 600 stores 

in the contiguous United States, primarily in the Midwest and South, as well as 

1,100 Sam Goody, Suncoast, and Media Play stores. Still, competition is tight 

for Best Buy, which jousts with Wal-Mart in the physical world and online 

music sites in the virtual.

� 

Key Numbers 




Worldwide Earnings ($M) 705 99 612 



2004 Announces plans to open some 73 stores in 2004 and early 2005. 

2003 Sells Musicland subsidiary to an affiliate of Sun Capital Partners. 

Becomes partner in Echo, an online music distributor. 

2002 Purchases Future Shop, a 100-store Canadian electronics retailer. 

Closes more than 100 Musicland stores. 

51 

The Companies

The Companies 

52 

Federated Department Stores, Inc. 

7 West 7th Street 


Phone: 513-579-7000 

www.federated-fds.com 

Overview 

The federation of mid- to high-range department stores in Federated Department 

Stores’ empire includes 450 Macy’s stores in 34 states, the Bloomingdale’s chain, 

The Bon Marché, Burdines, Lazarus, Goldsmith’s, and Rich’s. Miracles, however, 

have been somewhat scarce on 34th Street these days. The company’s 2004 

revenue was roughly that of 1996. And though the company did manage to 

generate positive income in 2003 after years of a doldrums economy, the company 

finds increased pressure from online retailers like Amazon.com, downward 

pressure from the likes of Wal-Mart, and pressure from specialty retailers besides. 

Federated has met the challenges of the new millennium by closing its Fingerhut 

operations and limiting catalog operations. As a further point of restructuring, 

the company shut down some 11 stores and laid off 2,000 employees in 2003. 

� 

Key Numbers 



Worldwide Earnings ($M) 693 818 –15 




2004 Adds the Macy’s name to its Bon Marché, Burdines, Goldsmith’s, Lazarus, 

and Rich’s stores. 

Adds restaurants in ten stores, including some of Macy’s largest locations. 

Creates the new Macy’s Home Store division, which focuses on homerelated 

categories for Macy’s stores. 

2003 Terry Lundgren, former COO, becomes CEO. 

2002 Sells Fingerhut credit card receivables. 

2001 Discontinues Macy’s by Mail catalog and downgrades the Bloomingdale’s 

website to an advertising vehicle. 

Converts 19 Stern’s brand stores to Bloomingdale’s and Macy’s brands. 

Acquires Liberty House, the largest department store in Hawaii. 

53 

The Companies

The Companies 

54 

Gap Inc. 

2 Folsom Street 

San Francisco, CA 94105 

Phone: 650-952-4400 

www.gap.com 

Overview 

Born in 1969 by heirs to the Levi’s fortune, Donald and Doris Fisher, Gap 

catered to the younger side of the generation gap by providing a retail outlet 

selling jeans to the youth of the nation. Initially loyal to the family business, 

Gap sold primarily Levi’s jeans in its stores. The Fisher Company still has a 

tight hold on the company, owning 20 percent of the firm and holding three 

seats on the board of directors. The retailer underwent a metamorphosis in 

1983 when it hired Mickey Drexler as president of the Gap division. Drexler 

became CEO of the company in 1995 and reigned until 2002. Today, the company’s 

wardrobe consists of not only Gap, but also the up-market Banana 

Republic (purchased in 1983), Gap Kids (launched 1985), discounter Old Navy 

(launched 1994), and Gap Body (launched 1998). The company started selling 

online in 1997 through Gap.com. Gap’s empire of more than 4,200 stores stretches 

across the United States, Canada, France, Germany, the United Kingdom, and 

Japan. Of those stores, 3,506 are in the United States. In terms of store count, 

Gap is the company’s largest brand, with more than 2,900 domestic and international 

stores. Old Navy is the second largest, with more than 840 stores 

worldwide. Banana Republic trails with 438 stores worldwide. 

In its effort to make its clothing affordable, Gap relies heavily on overseas suppliers; 

more than 90 percent of its clothing is manufactured outside the United 

States. The company uses suppliers in more than 50 countries. In an effort to 

clear itself of using overseas sweatshops, the company adopted ethical standards

for its suppliers as well as an audit and enforcement policy. As were many retailers, 

Gap was buffeted by the poor economy and some overreaching in its markets— 

it veered too far away from its khaki and T-shirt line and left much of its clientele 

looking elsewhere for basic garb. 

Gap is noted for its progressive management. Old Navy President Jenny Ming 

was named one of Fortune magazine’s “50 Most Powerful Women in American 

Business” in 2003. 

� 

Key Numbers 



Worldwide Earnings ($M) 1,030 478 116 




2004 Announces that in 2005 it’s opening a new chain of stores for women 

over age 35. 

Divests its ten stores in Germany. 

2003 Madonna and Missy Elliott are picked as spokeswomen for Gap. 

2002 Domestic and international operations split. 

Paul Pressler becomes CEO upon retirement of Mickey Drexler, who 

served as CEO for nearly 20 years. 

55 

The Companies

The Companies 

56 

The Home Depot, Inc. 

2455 Paces Ferry Road, NW 

Atlanta, GA 30339 

Phone: 770-433-8211 

www.homedepot.com 

Overview 

More than a few people call the Home Depot their home for home improvement 

items. The company has grown to be the number-two retailer in the 

United States, behind Wal-Mart, and the largest specialty retailer across all 

categories. Home Depot is much more than a hardware store; its assortment 

also includes major appliances and rugs. Indeed, the “category killer” Home 

Depot, with its warehouse format, wide selection (40,000 items), and low prices, 

has accreted 1,650 stores in the United States, Canada, and Latin America. 

Home Depot sells not only to consumers, but has also developed a strong 

following among contractors and construction professionals. Recently the 

company expanded into the high-end market with its Expo Design Center 

brand, which now includes approximately 50 stores. Other market-expanding 

activities include the opening of a HD Professional Solutions Group, which 

provides flooring installation services for professional builders, Landscape 

Supply Stores, and the addition of tool rental centers in existing and new stores. 

While the competition, notably Lowe’s, has been taking away some of Home 

Depot’s market share, the company remains undeterred. It opened nearly 200 

stores in 2003 and spent $250 million to renovate its older centers.

� 

Key Numbers 







2004 Opens two stores in New York City. 

Spends $3.7 billion to build some 175 new stores, modernize existing 

stores, and upgrade technology. 

Acquires Creative Touch Interiors, a floor and counter installer, and 

White Cap Industries, a seller of tools and supplies for concrete, electrical, 

landscaping, and other, similar types of contractors. 

Acquires a 20-store Mexican chain. 

Spends $5.5 million to settle a discrimination suit brought by Colorado 

employees. 

2003 Acquires IPUSA, a roofing installer, and RMA Home Services, a window 

and siding installer. 

2002 Launches HD Builder Solutions. 

Expands Latin American presence by purchasing a small chain in the 

border town of Juarez, Mexico. 

57 

The Companies

The Companies 

58 

The Kroger Co. 

1014 Vine Street 


Phone: 513-762-4000 

www.kroger.com 

Overview 

Though Kroger is the largest grocery chain in the country, an upstart firm called 

Wal-Mart is the largest purveyor of groceries in the United States. Kroger runs 

3,700 stores across the country under more than 20 brands. Kroger’s brands 

include not only Kroger, but Quik Stop, Kwik Shop, Fred Meyer, Ralphs, Food 

4 Less, and PriceRite. The company has been growing through acquisition; 

recent purchases include Fred Meyer (which included the Ralphs, Smith’s, and 

QFC chains), and it has also purchased supermarkets from Albertson’s and 

Winn-Dixie in Texas. The company operates in the supermarket, convenience 

store, and club/warehouse formats. While the supermarket world is notoriously 

cutthroat, with razor-thin margins, the entrance of Wal-Mart with its lower cost 

structure (nonunion/lower-cost labor force, share overhead, more efficient distribution, 

and stronger power over merchants) has marked the entrance of great 

whites into already shark-infested waters. Kroger has responded by pouring 

money into renovations of older stores, cutting prices, developing “dollar store” 

concept locations, and consolidating operations.

� 

Key Numbers 




Worldwide Earnings ($M) 315 1,205 –74 



2004 Long strike at the Southern California Ralphs supermarket chain, owned 

by Kroger, ends. 

Acquires more than 20 supermarkets from Albertson’s and Winn-Dixie 

in Texas. 

Reaches new labor agreements with employees in Southern California, 

Kentucky, Tennessee, and Alabama. 

2003 Joseph Pichler steps down as CEO, to be succeeded by David B. Dillon. 

Introduces Naturally Preferred private-label organic products. 

2001 Announces price cuts to compete with Wal-Mart, which competes in 

half its markets. 

Announces 1,500 job cuts. 

59 

The Companies

The Companies 

60 

Starbucks Corporation 

2401 Utah Avenue South 

Seattle, WA 98134 

Phone: 206-447-1575 

www.starbucks.com 

Overview 

Here’s a bit of trivia: Starbucks is named after the first mate of the Pequod in 

Moby Dick. Little else about Starbucks, which has become the leading specialty 

coffee retailer in the country, is trivial. Starbucks operates 4,500 shops in five 

countries and has quickly become part of the national culture. The company 

plans on opening 550 company-owned stores and 375 licensee stores in 2004. 

In addition to its stores, the company has partnered with larger food companies 

to sell everything from coffee beans to ice cream and cold beverages in grocery 

stores. The company is capitalizing on the use of its stores as an ad hoc place 

to do business by providing, through partnerships with HP and T-Mobile, wireless 

Internet access in 1,200 of its locations. 

For employees, the benefits of Starbucks add up to much more than a hill of 

coffee beans (a pound of free coffee a week is, of course, a benefit); the company 

has garnered a place on the 2003 and 2004 Fortune “Best Companies to 

Work For” list for its liberal workplace policies, including stock options programs, 

employee training programs, benefits for part-time employees, and partner 

benefits.

� 

Key Numbers 


2003 2002 Change (%) 





2004 Plans to open some 550 company-owned locations and some 375 

licensed locations in the United States, as well as some 350 locations 

internationally. 

Announces a price increase, which will cause the cost of the average 

cup of Starbucks coffee to rise 11 percent. 

Launches Hear Music service with HP, which allows customers in some 

locations to create customized CDs, with plans to offer the service in 

2,500 stores by 2006. 

2003 Acquires Seattle Coffee Company and its Seattle’s Best Coffee brand 

from AFC Enterprises for $72 million. 

2002 Announces expansion plans in Latin America and opens stores in 

Germany. 

2001 Opens more than 1,000 stores worldwide. 

61 

The Companies

The Companies 

62 

Target Corporation 

1000 Nicollet Mall 

Minneapolis, MN 55403 

Phone: 612-304-6073 

www.target.com 

Overview 

Target, formerly Dayton Hudson, operates under the Target brand. The corporation 

operates some 1,275 Target and SuperTarget stores. Target Corporation 

used to include mid-range department stores Mervyn’s and high-end Marshall 

Field’s in its fold, but sold off those chains this year to focus exclusively on its 

Target stores, which generated more than 80 percent of the corporation’s sales. 

Target thrives in the new millennium, while old-line retailers like K-Mart struggle 

for survival, because it prices aggressively and offers stylish product lines designed 

by noted architects and designers such as Princeton’s Michael Graves. Such tactics 

have earned Target the distinction of number-two discounter in the United States. 

Other Target Corporation endeavors include Target Greatland and SuperTarget, 

both super-store formats and target.direct, an online store. 

� 

Key Numbers 







2004 Sells its Marshall Field’s and Mervyn’s businesses. 

Sells Signals and Wireless gift catalog businesses. 

Plans to open some 95 new stores this year. 

2003 Opens three new SuperTarget stores in Dallas, Texas. 

2002 Opens 92 new Target stores. 

2001 Renames Dayton’s and Hudson’s stores Marshall Field’s. 

Acquires rights to Montgomery Ward stores from the bankrupt reseller. 

2000 Dayton Hudson renames itself Target Corporation. 

63 

The Companies

The Companies 

64 

Wal-Mart Stores, Inc. 

702 SW Eighth Street 

Bentonville, AR 72716 

Phone: 479-273-4000 

www.walmartstores.com 

Overview 

Sam Walton’s Wal-Mart Stores has become perhaps the most important company 

in the United States. Since 2000, the retailing juggernaut has been led by Lee 

Scott, the company’s former chief operating officer, who replaced David Glass, 

CEO since Sam Walton left the position in 1988. Not only does it lead the 

Fortune 500 in terms of sales, it is also the country’s largest nongovernment 

employer, largest retailer in the United States, largest retailer in Canada, and a 

key business partner of most consumer products companies. More recently, the 

company became the country’s largest seller of groceries, much to the chagrin 

of grocery chains such as Kroger and Safeway. The company sells through 

4,775 stores, including original format discount stores, Wal-Mart Supercenter 

combination discount and grocery stores, and warehouse format Sam’s Club 

stores. Outside the United States, Wal-Mart has operations in Latin America, 

Europe, and Asia. As if being number one weren’t enough, the company’s 

expansion plans include adding 800,000 workers in the next 5 years worldwide, 

adding 55 new discount stores and 230 new Supercenters in the United States 

in 2004, and investing heavily in Chinese outlets. 

With its size and power, Wal-Mart has become the target of controversy. Many 

detractors feel that the efficiency and cost savings that Wal-Mart has achieved 

have come at a heavy price to employees and vendors alike. Wal-Mart has been 

accused of squeezing its vendors, using part-time employees to avoid paying 

benefits, using primarily nonunion labor to lower labor costs, and knowingly 

using outside contractors that employ illegal aliens to perform janitorial services.

� 

Key Numbers 





Number of Employees 1,500,000 1,400,000 7 


2004 Opens online music store. 

Fined $3.1 million for multiple violations of the Clean Water Act. 

Acquires Bompreco, a supermarket chain in Brazil. 

Federal court rules Wal-Mart must pay employees for unpaid overtime 

hours worked between 1994 and 1999. 

2003 Sells McLane grocery distribution business to Berkshire Hathaway. 

Law enforcement raids discover hundreds of illegal immigrants, 

employed by outside cleaning contractors, working in Wal-Mart stores. 

2002 Unseats Exxon-Mobil as the largest company by revenue in the United 

States and therefore leads the Fortune 500. 

Attains stake in Japanese retailer SEIYU. 

Purchases Puerto Rican grocer Supermercados Amigo. 

65 

The Companies

The Companies 

66 

Transportation and Logistics 

Companies 

Canadian National Railway Company 

935 de la Gauchetière Street West 

Montreal, Quebec H3B 2M9, Canada 

Phone: 514-399-5430 


455 N. Cityfront Plaza Drive, 20th Floor 

Chicago, IL 60611-5318 

Phone: 312-755-7600 

www.cn.ca 

Overview 

Canadian National Railway Company, or CN, operates the largest rail network 

in Canada and the only transcontinental network in North America, serving 

ports on the Atlantic, Pacific, and Gulf coasts while linking all three NAFTA 

nations. The company operates in eight Canadian provinces and 16 U.S. states, 

with a network that stretches from British Columbia to Nova Scotia and south 

to the Gulf of Mexico. That its trains run on a regular schedule and customers 

reserve shipping capacity on those trains further differentiates CN from its competition. 

The company operates three regional headquarters, Western Canada 

(Edmonton), Eastern Canada (Toronto), and U.S. (Homewood, IL). Wal-Mart, 

the United Parcel Service, and the United States Postal Service are the company’s

iggest customers. Fifty-six percent of CN’s revenue comes from U.S. domestic 

and cross-border shipments, and 25 percent comes from domestic Canadian 

shipments. 

CEO E. Hunter Harrison has focused the company on maximizing performance 

in five areas: asset utilization, service, safety, cost control, and, last but in no 

way least, its people. 

Insiders say positive things about the company’s benefits, and the company’s 

culture is known to be friendly and professional. One insider says, “No matter 

what department I’ve been working in, the people at CN have been some of 

the best people I’ve ever met.” The company’s management training program is 

also lauded by insiders; during the program, participants rotate through a variety 

of areas within the company, including the all-important operations arm (to 

advance in this company, it’s imperative to have a nuts and bolts-level understanding 

of how railroads and intermodal shipping work). Job seekers should also 

be aware that working at CN demands dedication and, in areas like operations, 

especially, long and sometimes unpredictable hours. 

A final note: CN currently employs a lot of people with more than 25 years of 

tenure at the company, relatively few people with between 5 and 25 years of 

tenure, and a lot of people with 5 or fewer years of tenure. Do the math: There’s 

going to be lots of opportunity to advance at CN in coming years, as long-time 

employees at the company retire. 

67 

The Companies

The Companies 

68 

� 

Key Numbers 


2003 2002 Change (%) 





2004 Acquires BC Rail portion of British Columbia Railway. 

Acquires the railway and other assets of Great Lakes Transportation. 

2003 Opens new Winnipeg intermodal terminal. 

2002 Names E. Hunter Harrison CEO. 

Opens state-of-the-art Montreal intermodal terminal.

C.H. Robinson Worldwide, Inc. 

8100 Mitchell Road 

Eden Prairie, MN 55344 

Phone: 952-937-8500 

www.chrobinson.com 

Overview 

As one of the country’s largest non-asset-based transportation companies, C.H. 

Robinson provides logistics services using trains, planes, and automobiles (or 

trucks) belonging to other parties. C.H. Robinson is the only non-asset-based 

transport company to make the Fortune 500. CHRW’s statistics include 2.7 million 

shipments to 15,000 customers around the world, 20,000 carriers under contract 

in the United States and 10,000 under contract in Europe, and 150 offices worldwide. 

CHRW’s markets include food and beverage, printed materials, paper, 

manufacturing, and retail. In addition to transportation, CHRW’s produce sourcing 

business procures produce and provides category management for wholesalers, 

retailers, and food service operators. Finally, CHRW provides information 

management services, such as purchasing, route optimization, and fleet management, 

for motor carriers. 

� 

Key Numbers 

2003 2002 Change (%) 





69 

The Companies

The Companies 

70 


2004 Acquires a Dalian-based freight forwarder, adding seven offices in China. 

2002 Purchases FTS, a non-asset-based transportation provider. 

2000 Acquires Trans-Consolidated, Inc. 

Partners with PaperExchange.com to provide logistics services.

DHL Worldwide Network S.A. 

De Kleetlaan 1 

B-1831 Diegem, Belgium 

Phone: +32-2-713-4000 

www.dhl.com 


1200 South Pine Island Road, Suite 600 

Plantation, FL 33324 

Phone: 954-888-7000 

Overview 

DHL got its start in 1969 by providing an innovative solution to a vexing 

problem: It flew documentation ahead of shipped freight, allowing customs 

papers to be processed ahead of cargo, thereby cutting weeks off of shipping 

times. The concept worked and DHL—named for the initials of its founders 

Dilsey, Hillblom, and Lynn—grew exponentially. DHL now surpasses both FedEx 

and UPS in international deliveries. A subsidiary of Deutsche Post, Germany’s 

postal service, DHL provides transportation services to 120,000 destinations in 

nearly 230 countries. Deutsche Post consolidated its Euro Express, DHL, and 

Danzas companies under the DHL brand. DHL now handles all of Deutsche 

Post’s express delivery and logistics operations, which are broken into four business 

units: DHL Express, DHL Freight, DHL Danzas Air & Ocean, and DHL 

Solutions. DHL Express is a parcel delivery company servicing more than 

120,000 locations worldwide from more than 4,000 offices. DHL Freight handles 

truckload and less-than-truckload shipments throughout Europe by road, rail, 

and combinations of the two. DHL Danzas provides air and sea freight solutions. 

DHL Solutions is involved in consulting, information technology, and 

customized solutions for its customers. DHL acquired Airborne to augment 

(contrary to the name of the acquired) its U.S. ground operations so it could 

better take on UPS and FedEx in the United States. 

71 

The Companies

The Companies 

72 

� 

Key Numbers 


2003 2002 Change (%) 


Worldwide Earnings ($M) n/a n/a n/a 



2004 Announces plans to spend $1.2 billion to beef up its ground delivery 

capacity in North America. 

2002 Deutsche Post, already a 51 percent owner of DHL, acquires the rest 

of the firm. 

A DHL jet collides with a Russian passenger jet, killing 95 people. 

2001 Deutsche Post increases its stake in DHL to 51 percent.

FedEx Corporation 

942 South Shady Grove Road 

Memphis, TN 38120 

Phone: 901-818-7500 

www.fedex.com 

Overview 

The beginnings of FedEx are the stuff of myth. Fred Smith, founder of FedEx, 

proposed an overnight delivery service with a hub in Memphis. For this pie-inthe-sky 

dream he received a C grade on a college paper. Today, FedEx is the 

world’s leading express delivery service, handling more than 3 million packages 

a day. It does this with a fleet of 640 aircraft and 48,000 trucks in more than 

210 countries. FedEx is composed of five business units: FedEx Express, which 

handles express transport; FedEx Ground, which provides ground delivery for 

small packages; FedEx Freight, divided into eastern and western regions, which 

operates as a less-than-truckload carrier; FedEx Custom Critical, which performs 

urgent special deliveries; and FedEx Trade Networks, which provides brokerage 

and freight forwarding services. Because ground shipment operations are growing 

faster than express shipments, the company is shifting its workforce to 

where the demand is growing. More recently, FedEx has purchased Kinko’s to 

bolster its retail presence. 

73 

The Companies

The Companies 

74 

� 

Key Numbers 







2004 Acquires Kinko’s. 

Wins contract for international express shipments for the U.S. Postal 

Service. 

2001 Acquires less-than-truckload carrier American Freightways. 

2000 Changes name from Federal Express to FedEx.

Ryder System, Inc. 

3600 NW 82nd Avenue 

Miami, FL 33166 

Phone: 305-500-3726 

www.ryder.com 

Overview 

Founded by Jimmy Ryder with a single Ford truck purchased for $35 in 1933, 

Ryder was the first truck-leasing company in the United States. Today, with a 

fleet of more than 160,000 vehicles, Ryder System is a major force in the world 

of fleet and supply chain management. The company leases to more than 13,200 

customers, primarily in the United States, Canada, and the United Kingdom. 

Ryder divides itself into three primary lines of business: Its Fleet Management 

Solutions (FMS) group manages vehicles for commercial customers. Its Supply 

Chain Solutions (SCS) business provides supply chain and logistics support 

from materials management to distribution. The Dedicated Contract Carriage 

(DCC) group supplies trucks, drivers, and administration to customers. 

Ryder is doing all right by its customers. The company has received Supplier 

of the Year awards from a spectrum of Fortune 500 companies ranging from 

Alcan to Xerox. Ryder has also received numerous accolades for its information 

systems. It has ranked on Information Week’s list of the 500 most innovative IT 

companies for the past 5 years and on the 2002 CIO magazine list of top 100 

IT process and integration firms. Within the transportation industry, Ryder 

ranked among Fortune’s “Most Admired Companies” in 2004. Moreover, the 

company has the reputation as a progressive employer: Latina Style magazine 

has ranked Ryder a top-50 employer of Latinas for the past 6 years, and 

Hispanic Magazine named it a top employer of Hispanics in 2004. 

75 

The Companies

The Companies 

76 

The company continues to grow both organically and through acquisition. In 

2004, the firm announced the purchase of Iowa-based General Car and Truck 

Leasing for $105 million, adding 4,200 vehicles and nearly $75 million a year to 

the company’s top line. 

� 

Key Numbers 

2003 2002 Change (%) 






2004 Acquires Ruan Leasing Company. 

Launches online portal where Ryder’s carriers, operations staff, and 

management can access real-time information about customer 

shipments. 

2002 Named top third-party logistics provider by Inbound Logistics magazine. 

2001 Launched Asia-Pacific headquarters with acquisition of Singapore-based 

Ascent Logistics Pte Ltd.

Schneider National 

3101 South Packerland Drive 

Green Bay, WI 54306 

Phone: 920-592-2000 

www.schneider.com 

Overview 

Schneider National came into being in 1935 when A. J. “Al” Schneider sold 

the family car and bought a truck with the proceeds. Today Schneider National, 

with 15,000 trucks and 47,000 trailers, is one of the largest truckload carriers in 

North America. The company operates in the United States, Canada, and Mexico 

and boasts that it services two-thirds of the Fortune 500. The company has more 

than 16,000 employees and 14,000 contractors under its aegis and more than $3 

billion in annual revenue. Schneider’s nearest competitor, Swift Transportation, 

rakes in a little more than $2 billion in revenue each year. Schneider is a privately 

held company, and Al’s son Donny remains the chairman of the board. Schneider, 

however, doesn’t let nepotism spoil its business. In 2002, Christopher Lofgren, 

who previously served as CIO and COO, became the first outsider to run the 

company. 

Schneider consists of four business units to keep it cruising on down the highway 

of revenue growth: Schneider National Carriers, which was created from 

three acquired companies in 1985 as a nonunion alternative to the company’s 

original trucking business, encompasses the firm’s truckload services. Schneider 

Bulk Carriers transports liquid chemicals. Schneider created its Specialized Carriers 

in the 1990s to service the glass industry. It augmented the division with the 

purchase of A.J. Mettler & Rigging in 1999. Schneider Finance sells and leases 

trucks. Ever looking for new growth opportunities, Schneider’s National Carriers 

division has teamed up with Burlington Northern Santa Fe to develop intermodal 

solutions. 

77 

The Companies

The Companies 

78 

The firm has noted information technology capabilities and regularly garners 

spots on the InformationWeek 500 and InfoWorld 100. The company was the 

first in the nation to create a satellite tracking system for its fleet in 1988. The 

company tried to parlay its IT competency into an IPO of its Schneider Logistics 

division in 2000. Needless to say, the stock market climate over the past 3 years 

kept the IPO a dream. 

� 

Key Numbers 

2003 2002 Change (%) 


Worldwide Earnings ($M) n/a n/a n/a 




2004 Honored with four “Quest for Quality” awards from Logistics Management, 

in Dry Freight (Van), Bulk, Industrial/Heavy Haul (Specialized), and 

Intermodal. 

2003 Expands transportation brokerage business by opening brokerage offices 

in Denver, Baltimore, and Memphis. 

Schneider Brokerage launches FreightPlace, a website that allows carriers 

to find shipments to match their capacity. 

2002 Christopher Lofgren becomes CEO, the first person outside the Schneider 

family to hold the position. 

2001 The company adds expedited services in the United States, Canada, and 

Mexico.

Union Pacific Corporation 

1400 Douglas Street 

Omaha, NE 68179 

Phone: 402-271-5777 

www.up.com 

Overview 

Union Pacific’s illustrious past dates back to 1863 when Congress chartered it 

to build a railroad to reach the pacific (along with Central Pacific Railroad). 

The company made history in 1869 when it met the Central Pacific Railroad at 

Promontory, Utah, and linked the country by rail. Today, Union Pacific stands 

as the largest railroad in the United States, spanning 23 states and covering nearly 

two-thirds of the country with 33,035 miles of tracks. Union Pacific’s tracks 

run from the West Coast to Chicago, Memphis, and New Orleans. Union Pacific’s 

rails also lead to all major Mexican ports of entry as well as Mexico, positioning 

it well for a post-NAFTA world. Within the world of freight railroads, UP is 

number one as well, ahead of challenger Burlington Northern Santa Fe. The 

company’s inventory consists of more than 7,000 locomotives and nearly 91,000 

freight cars. UP’s largest customers are the steamship company APL and General 

Motors, followed by a number of utilities and chemical manufacturers. UP holds 

the distinction of being the largest transporter of chemicals in the country, 

hauling most of them from the Gulf Coast. It is also a major coal transporter, 

moving 240 million tons a year from the Powder River Basin of Wyoming and 

the coalfields of Illinois, Utah, and Colorado. While Union Pacific is primarily 

a railroad, it also operates a logistics company focusing on rail and intermodal 

transportation services, Union Pacific Distribution Services, and three technology 

companies: Nexterna (wireless software), Timera (workforce management), 

and Transentric (supply chain management). 

79 

The Companies

The Companies 

80 

The near future looks extremely sanguine for the old railroad. It received a large 

cash infusion with the IPO of its Overnite trucking division in 2003 and raised 

its quarterly dividend by 30 percent. It has forecasted that it will add 2,000 to 

3,000 people to its roster in 2004, nearly equal to the 2,500 people it hired in 

2003. Union Pacific is proving to be an engine that can. 

� 

Key Numbers 

2003 2002 Change (%) 






2004 Is forced to reroute some freight shipments to trucks due to train-crew 

shortages. 

2003 Spins off its Overnite trucking unit in an IPO. 

2001 Buys less-than-truckload carrier Motor Cargo Industries. 

Completes integration with Southern Pacific railroad.

United Parcel Service, Inc. 

55 Glenlake Parkway, NE 

Atlanta, GA 30328 

Phone: 404-828-6000 

www.ups.com 

Overview 

Moving 13 million packages a day through more than 200 countries, UPS is 

the largest package delivery company in the world. Its fleet consists of 88,000 

brown motor vehicles and 575 aircraft. In addition to package delivery, UPS 

offers supply chain management solutions to its customers. Though the company 

is public, nearly 90 percent of the company stock is owned by employees 

and family members. As competition has become more keen in the domestic 

ground carrier market, especially as FedEx has entered the market, UPS has 

become more competitive by offering faster service on some of its routes. In 

addition, it has increased its retail presence through the acquisition of the Mail 

Boxes Etc. franchise, which it has rebranded as the UPS store. The company is 

looking toward nontraditional markets for growth, especially in the area of 

supply chain management solutions. UPS earned the distinction of being the 

“Most Admired Company” in its industry by Fortune magazine in 2003 and 

2004. 

� 

Key Numbers 

2003 2002 Change (%) 





81 

The Companies

The Companies 

82 


2004 Announces acquisition of Menlo Worldwide Forwarding from CNF. 

2003 Updates company logo and uniforms. 

Sells aviation technology unit to Garmin International. 

2001 Purchases supply chain management provider Fritz Companies. 

Purchases Mail Boxes Etc.

U.S. Postal Service 

475 L’Enfant Plaza SW 

Washington, DC 20260 

Phone: 202-268-2500 

www.usps.com 

Overview 

Few organizations have a history as rich as the U.S. Postal Service. Created in 

1775 with Benjamin Franklin as the first postmaster general, the USPS is the 

second-oldest government agency. Today, the Postal Service delivers more than 

200 billion pieces of mail a year. While it has a monopoly on nonurgent letters, 

it must compete with private carriers in the areas of package delivery and urgent 

deliveries. The Postal Service is an independent government agency that derives 

its funding primarily through postage. While the agency is independent, the 

President appoints nine of the 11 members on the Postal Service’s board, which 

in turn selects the Postmaster General. Though the ubiquity of e-mail has caused 

a decrease in mail traffic, the Postal Service has attempted to stem losses by 

developing online offerings. 

� 

Key Numbers 

2003 2002 Change (%) 


Worldwide Earnings ($M) 3,868 –676 n/a 



83 

The Companies

The Companies 

84 


2004 Announces profit of nearly $3.9 billion for 2003, the largest in USPS 

history. 

Lance Armstrong, leader of the USPS Cycling Team, wins his sixth 

Tour de France title. 

2003 Posts a profit on the year for the first time since 1999. 

2002 The USPS initiates a 5-year “transformation plan” to allow the 

organization to meet changing customer needs.

On the Job 

The Big Picture 

Salary Ranges 

Job Descriptions 

Real People Profiles 

85 

On the Job

On the Job 

86 

The Big Picture 

This section samples a broad range of supply chain management opportunities 

that we’ve found through our interviews with professionals and our research of 

the SCM function and industries that rely on supply chain management. Although 

the selection of roles is vast, we found that recruiters are looking for relatively 

specialized skill sets. Moreover, for entry-level positions, companies often have 

a set of “go to” schools they recruit from to fill positions. Organizations such 

as the USPS have a set of schools, including Arizona State University, the 

University of Maryland, and the University of Tennessee, with formal supply 

chain management programs, that make up the lion’s share of their recruiting 

efforts. In addition to candidates with degrees in supply chain management 

(both undergraduate and MBA), firms often bolster their rosters with engineering 

degree holders. Titles for MBAs and graduate degree holders often don’t 

differ from those of their undergraduate brethren. For instance, an MBA and 

undergraduate both might land a job with the title of materials specialist upon 

graduation. Despite the lack of differentiation conferred by the title, the jobs 

would differ considerably in pay scale and responsibility. Additionally, advanceddegree 

holders are more likely to find rotational or management trainee positions 

than undergraduates. Advanced-degree candidates will find exposure to many 

disciplines through four 6-month rotations before settling into a procurement, 

logistics, or supply chain management role, whereas an undergraduate might 

settle directly into a procurement or inventory management role. 

As if searching for a job weren’t difficult enough, job descriptions in supply 

chain management suffer from a blurring of responsibilities over titles, a lack of 

standard nomenclature for positions, and, often, a lack of distinction between

anks. In the first case, as perhaps is fitting for a discipline that is nothing if not 

interdisciplinary, the job description for a given role may encompass a number 

of disciplines. For instance, in a manufacturing firm, a procurement or purchasing 

role might include inventory management responsibilities; in a distribution 

or logistics firm, a transportation role might include those inventory management 

responsibilities. Second, a standard nomenclature for supply chain management 

roles does not exist. Unlike the field of consulting, where the differences 

between analyst and associate/consultant are nearly universally understood, a 

single role in supply chain management might be called analyst, specialist, or 

coordinator, depending on the caprices of the company that set out the requisition 

for that position. Finally, the field doesn’t readily distinguish between 

levels of seniority and expertise in job titles. For instance, within the same company, 

a PhD with 20 years of experience and profit/loss responsibility and a 

greenhorn with a freshly minted bachelor’s degree both may be called a specialist. 

To simplify this Gordian knot, we’ve broken down roles into key areas: 

materials and procurement, logistics, supply chain management, transportation, 

inventory management, operations, sales and customer service, and consulting. 

87 

On the Job

On the Job 

88 

Salary Ranges 

One of the best things going for supply chain jobs is that they are often in 

low-cost-of-living locations. While graduates flock to publishing and media and 

other “sexy” jobs that don’t cover bar tabs in cities whose costs of living edge 

up with that of Tokyo, the manufacturing industry pays solid salaries in areas 

that don’t require a platinum card to buy groceries. Starting salaries for undergraduates 

for most positions tend to pay between $35,000 and $55,000. MBA 

salaries tend to start at $70,000 to $85,000, but it’s not unheard of for MBA 

salaries to dip below $50,000, especially for people with little prior experience. 

The industry does pay bonuses based on individual performance, but the lackluster 

economy has eroded a large chunk of incentive-based compensation. 

Even in good times, bonuses would be closer to 10 percent of base salary. Salaries 

for manager-level positions reach approximately $95,000, directors approximately 

$150,000. Salaries for vice presidents top out at approximately $200,000. 

The supply chain function isn’t one for people trying to strike it rich.

Job Descriptions 

Materials and Procurement Roles 

Materials Scheduler 

Education: BA/BS 

Salary range: $35,000–45,000 

Materials schedulers coordinate raw materials and inventory with production 

schedules. They serve as conduits so that the right amount of material arrives 

at a production facility at the right time. Likewise, they coordinate release of 

finished products with movement to quality assurance. 

Materials Analyst/Manager 

Education: BA/BS, often advanced degree in business, supply management, or 

industrial engineering 

Salary range: $45,000–60,000 (analyst); $55,000–90,000 (manager) 

The purview of this function is materials and inventory components. Duties 

include managing inventory levels, coordinating with purchasing and manufacturing 

to ensure efficient costing of inventory, materials budgeting and forecasting, 

and, often, warehousing, receiving, and scheduling responsibilities. Employers 

often seek materials analysts with just-in-time or lean manufacturing knowledge, 

as well as competency in Six Sigma practices. Often, the materials analyst works 

closely with engineering and product development teams to determine what 

effects changes in materials will have on the production of a product. At more 

senior levels, such as manager or director, you take on a strategic role to improve 

processes, quality, and productivity. 

89 

On the Job

On the Job 

90 

The position requires excellent analytical skills, the ability to work with people 

across functions, and attention to detail. The career path of the materials 

analyst leads to materials manager roles and lateral movement to logistics 

management roles. 

Production Analyst/Manager 

Education: BA/BS, advanced degree 


Production managers serve as mini-plant managers in a manufacturing company. 

Their responsibilities include coordinating production schedules, forecasting 

labor requirements, maintaining quality, determining material requirements, 

and managing finished goods inventory/output. 

While the position requires analytical and forecasting skills to determine material 

and labor requirements, forecast output, and maintain quality, the position also 

requires extremely keen people skills. Production managers interact with line 

personnel, often people with vastly different age and education levels than most 

professionals. Add to this interaction with management and engineers. 

The position often leads to roles as plant manager and often to executive operational 

roles, such as COO. As with most manufacturing positions, many companies 

seek people with Six Sigma and lean manufacturing experience. The 

career path in production management might be 2 to 4 years as an analyst, 

another 2 to 4 years as a production manager, then on to director-level roles.

Procurement Analyst/Purchasing Manager 

Education: BA/BS, MBA 


As the title implies, purchasing managers oversee purchasing operations for an 

organization. Junior roles, such as procurement analyst, typically focus on a single 

aspect of procurement and purchasing. For instance, a procurement analyst 

might work primarily on analyzing historical purchasing costs for materials, forecasting 

future costs, or finding prospective vendors. In large organizations, purchasing 

is a large and strategic endeavor. Purchasing involves identifying suppliers 

from which to source materials, selecting those suppliers, negotiating supply 

contracts, developing the business frameworks for those contracts, and managing 

suppliers. Purchasing managers work with materials managers and manufacturing 

departments to identify the material needs for the organization. Moreover, purchasing 

managers develop metrics on which to base management of procurement 

costs, delivery times, service levels, and quality. 

Purchasing managers need top negotiation and communication skills. 

Logistics Roles 

Logistics Analyst/Manager 

Education: BA/BS, advanced degree 


Analysts and managers work on a wide range of logistics functions, including 

warehouse and distribution operations, forecasting, planning, logistics information 

systems, customer service, and purchasing. Analyst roles might deal with an 

area within the logistics function, while senior roles such as manager or director 

roles involve overseeing a team of analysts. Managers negotiate and contract 

91 

On the Job

On the Job 

92 

with suppliers and carriers, develop supply chain metrics and strategy, and oversee 

day-to-day management of logistics functions. Analysts devote much of 

their days to problem solving, forecasting, and ensuring that operations are 

running within determined metrics. 

While all levels in the area require strong analytical skills and attention to detail, 

senior roles require outstanding people skills and strong negotiation skills. The 

ladder to a manager-level position might take 5 to 7 years to climb, a directorlevel 

or higher position 10 to 15 years. Supply chain professionals say that, as in 

other industries, advancement tends to be more prescribed and slower in larger 

companies than in smaller ones. 

Supply Chain Management Roles 

Process Engineer 

Education: Bachelor of civil, industrial, or mechanical engineering 

Salary range: $45,000–75,000 

Process engineers typically analyze processes within any number of industries— 

manufacturing, distribution and transportation, or retail—and develop improved 

processes that make better, safer use of labor, materials, energy, and other 

resources. For instance, a process engineer in a distribution center might work 

to improve outbound and inbound traffic processes or invoice handling. In a 

manufacturing environment he might develop a better method for handling raw 

materials. Additionally, he might develop the metrics used to manage the 

processes once improved. 

As with nearly every other function in supply chain management, companies 

are looking for people with Six Sigma experience and, in manufacturing environments, 

lean manufacturing knowledge.

Supply Chain Analyst 


Salary range: $50,000–80,000 

The analyst typically supports the supply chain manager through any number 

of activities, including defining and articulating business processes, performing 

analysis on any aspect of the supply chain, evaluating vendors and potential 

supply chain partners, researching industry best practices, participating in meetings, 

and communicating supply chain management goals to cross-functional teams. 

Supply Chain Systems Manager 


Salary range: $60,000–120,000 

Supply chain systems managers support logistics and supply chain operations 

through oversight and management of software systems such as i2, Baan, SAP, 

and Oracle. Functions include managing vendors and consultants, developing 

system requirements, reporting requirements, overseeing analysts and developers, 

and communicating needs of business and technical functions. The systems 

manager has knowledge of business processes, supply chain management 

practices, system design, and software and hardware design and the ability to 

communicate between technical and business groups. 

Supply Chain Manager 

Education: BA with 5–10 years of experience, MBA 

Salary range: $60,000–120,000 

The supply chain manager role is the holy grail of supply chain management 

and logistics, both sought after and somewhat rare. The scarcity of pure supply 

chain manager roles comes from the fact that the role is interdisciplinary—a 

93 

On the Job

On the Job 

94 

role that spans logistics and distribution, purchasing, manufacturing, inventory 

management, and even marketing and product development. 

The supply chain manager reviews existing procedures and examines opportunities 

to streamline production, purchasing, warehousing, distribution, and 

financial forecasting to meet a company’s needs. A supply chain manager typically 

develops strategies to cut costs, improve quality, and improve customer 

satisfaction. 

Supply chain managers need, in conjunction with a familiarity with distribution 

center operations, transportation, supplier operations, operations management, 

cost-benefit analysis, process improvement, and logistics strategy, excellent management 

and communications skills. They must be able to not only develop 

solutions, but also drive their implementation across functional areas and through 

to vendor organizations and supply chain partners. Companies seeking supply 

chain managers also look for Six Sigma experience and, in manufacturing settings, 

lean manufacturing experience. Moreover, development of SCM systems typically 

involves large-scale IT projects, so familiarity with and hands-on implementation 

of systems such as SAP is a plus. 

Vice President, Supply Chain Management 


Salary range: $125,000+ 

At the top of the supply chain management food chain, the vice president is 

part of the senior management team and usually reports to the chief operating 

officer of a company. The vice president’s purview often includes all supply 

chain functions, including logistics, facilities, and purchasing. The vice president 

translates executive strategies into supply chain functions. Reporting to the vice 

president, often, are directors of the various functional areas in supply chain.

Transportation Roles 

Transportation Manager 


Salary range: $45,000 (starting, with pay raises coming in quick succession) 

Transportation managers typically work under logistics managers to oversee the 

inbound and outbound traffic of materials and finished products from a distribution 

center. Transportation managers will often manage carriers, transportation 

costs within specified metrics, third-party transportation providers, and 

freight bill presentation; negotiate contracts; and ensure that freight moves 

smoothly across international borders. 

Because the transportation manager must ensure that transportation activities 

meet legal requirements, she must be familiar with Department of Transportation 

regulations. Like other positions in transportation, this is a demanding 

position with long, unpredictable hours and/or being on call 24/7; work/life 

balance can be an issue in this job and others that make sure the train or the 

truck or the plane or the bus leaves the station or the terminal or the distribution 

center or the airport on time. 

Fleet Manager 


Salary range: $45,000 (starting, with pay raises coming in quick succession) 

The fleet manager supervises and manages a dedicated contract carrier or 

private fleet. The fleet manager’s duties include hiring and managing drivers, 

developing routes, ensuring that the fleet meets Department of Transportation 

regulations, and optimizing fleet utilization. The fleet manager also manages 

fleet inventory, ensures prophylactic maintenance takes place, and plans fleet 

growth requirements. 

95 

On the Job

On the Job 

96 

Fleet manager, though requiring forecasting and analysis skills, is primarily a 

hands-on management role. Interpersonal skills, especially with a wide range of 

people, is essential to success in the position. Like many other jobs in transportation, 

this is a demanding job in that it often comes with long, unpredictable 

hours and being available on an as-needed basis. 

Inventory Management Roles 

Inventory Specialist 

Education: BA/BA 


The inventory specialist works to optimize inventory levels based on the cost of 

inventory, warehousing costs, service levels, and replenishment time and cost. 

An inventory coordinator might work at the retail, distribution center, or plant 

levels. The duties of the inventory specialist include working with supply chain 

managers to determine optimal inventory levels, analyzing historical sales data 

and seasonal demand to determine inventory needs, analyzing processes to 

determine replenishment cycles, and resolving issues related to inventory levels 

and replenishment. 

The inventory specialist role requires keen analytical skills and the ability to 

work at a level of high detail. 

Vendor-Managed Inventory/Replenishment Specialist 


Salary range: $35,000–60,000 

The vendor-managed inventory (VMI) specialist works for a manufacturer to 

manage the inventory of a customer. For instance, Procter & Gamble might 

have a contract to manage the inventory of its products at a grocery chain. The

VMI specialist would then work to optimize inventory levels for the client. 

Using sales activity, promotions data, and historical data, the specialist plans 

inventory replenishment. The specialist works with clients to determine optimal 

inventory levels and engages clients to obtain requisite data to carry out the 

task. The VMI specialist works with teams from both the vendor and client 

companies to ensure that manufacturing and demand are synchronized. 

The VMI specialist must not only possess knowledge of supply chain processes 

and analytical prowess, but also the ability to instill confidence in a customer 

whose business depends on proper inventory management. 

Operations Roles 

Warehouse Operations Manager 


Salary range: $45,000–85,000 

The warehouse operations manager typically works in the retail or distribution 

and transportation industries. Warehousing managers find among their responsibilities 

optimizing/managing placement of inventory within the warehouse, 

ensuring that inventory levels are accurate, and overall management of warehouse 

personnel. Managing warehouse personnel entails oversight of supervisors 

and workers, hiring workers and managing worker performance, and 

ensuring that the warehouse meets regulatory safety requirements. 

The warehouse manager’s skill set includes impeccable communication skills 

across educational and demographic strata, leadership skills, and some analytical 

skills. Warehouse managers are typically hands-on managers with a practical 

approach to management. 

97 

On the Job

On the Job 

98 

Facilities Manager 


Salary range: $55,000–85,000 

A facilities manager’s responsibilities typically include managing the physical 

building and machinery required to keep an operation such as a distribution 

center running smoothly. Therefore, facilities managers manage maintenance 

of equipment, plan for contingencies should equipment fail, and plan requirements 

for new property and equipment. Typical distribution center equipment 

includes conveyers, picking lights, sorters, and scanners. Facilities managers 

often work with outside vendors to develop training on equipment and 

negotiate maintenance contracts with vendors. 

Employers often prefer candidates with industrial, mechanical, or electrical 

engineering degrees for such positions. As with other SCM roles, facilities 

managers should be well versed in methodologies such as Six Sigma. 

Sales and Customer Service Roles 

Account Specialist/Customer Service 


Salary range: $30,000–40,000 

The account specialist/customer service role is typically an entry-level position 

for newly minted supply chain management majors. A specialist typically works 

at a logistics or transportation firm and is assigned a customer for whom he 

serves as primary contact. Typical duties include resolving customer service 

issues for a client, building relationships with clients and carriers, and coordinating 

shipments for the client.

The specialist is often located on site with the client; paramount abilities therefore 

include self-management, thinking on your feet, and the usual battery of 

client management skills. 

Customer Service Manager 


Salary range: $40,000–60,000 

The customer service manager leads teams of customer service representatives 

in resolving issues and maintaining high customer satisfaction. The role involves 

ensuring that contractual support representatives meet contractual service levels, 

defining those service levels, developing support center processes, and working 

with other functional areas to control service costs while maintaining customer 

satisfaction. 

Although customer service isn’t the most glamorous of functions within supply 

chain management, it does give greenhorns ample exposure to different aspects 

of the business. 

Account Manager/Supply Chain Sales 


Salary range: $75,000–150,000 

Supply chain account managers typically sell supply chain, outsourcing, or thirdparty 

logistics solutions to customers in specific industries, such as manufacturing 

or consumer packaged goods. The work of the account manager typically 

includes two functions: sales and account management. The first part of the 

job entails developing, along with specialists, a solution for a proposed customer. 

The second part entails ensuring that the customer is satisfied with the solution 

provided and finding additional solutions for follow-up work. In the second 

part of the function the account manager typically works with support and 

99 

On the Job

On the Job 

100 

operations personnel to determine potential follow-on solutions. The account 

manager also follows up on service issues for a client, while not necessarily 

resolving those problems herself. 

The sales position requires familiarity with logistics and supply chain solutions 

for a particular industry and superb communication and relationship-building 

skills. The account manager must be able to instill the client with enough confidence 

to hand over critical supply chain functions to the vendor firm. 

Consulting Roles 

Supply Chain Analyst 


Salary range: $45,000–70,000 

Analysts typically work under project managers and consultants in consulting 

firms. They often stay in that role for 2 to 4 years, at which time they move on 

to become project managers or go back to school to get their MBAs. In smaller 

consulting firms, analysts may stay in the role indefinitely or combine the analyst 

role with that of project manager. Supply chain analysts typically define business 

processes and then apply software systems such as SAP, i2, or Baan to improve 

and automate those systems. Put simply, analysts customize software packages 

to meet the needs of large enterprises. Typically, analysts interview managers 

and people who perform manufacturing, inventory, logistics, warehousing, and 

procurement functions to determine the business processes and supply chain 

requirements within a company. They then match these requirements against 

the features of a software package. From there, they work with application 

developers to customize that package to meet a client’s needs. Sometimes analysts 

will do some minor software development work themselves.

Supply Chain Consultant 

Education: BA/BS with 5–10 years of experience and/or MBA 

Salary range: $70,000–150,000 

The consultant is a senior role, usually post-MBA, that, along with the analyst 

and project manager, makes up the team on a consulting engagement. The 

supply chain consultant is a rare and desirable role in the field of supply chain 

management. The SCM consultant reviews existing procedures and examines 

opportunities to streamline production, purchasing, warehousing, distribution, 

and financial forecasting to meet a company’s needs. An SCM consultant typically 

develops strategies to cut costs, improve quality, and improve customer 

satisfaction. 

In addition to a familiarity with distribution center operations, transportation, 

supplier operations, operations management, cost-benefit analysis, process 

improvement, and logistics strategy, SCM consultants need excellent management 

and communication skills. They must be able not only to develop solutions, 

but also to drive their implementation across functional areas. 

Project Manager 


Salary range: $85,000–150,000 

Project managers typically lead consulting teams in the day-to-day management 

of client engagements. They often directly supervise analysts and work with 

consultants to ensure that a project is implemented according to agreed-on time 

and cost metrics. Their primary responsibilities are communicating with clients, 

marshalling firm and client resources, and working to ensure the project goes 

according to plan. 

101 

On the Job

On the Job 

102 

In most large consulting firms, people are given a project manager position 

based on exceptional performance as an analyst or by working as an analyst for 

2 years and obtaining an MBA. In smaller firms, the path to project manager is 

more fluid, and firms often take candidates with industry experience in lieu of 

consulting experience. 

Director of Client Management/Engagement Manager 


Salary range: $125,000+ 

The director of client management/engagement manager typically works for an 

outsourcer such as a third-party logistics or consulting firm. In a logistics firm, 

the director of client management typically manages account managers and sales 

staff, sets sales targets for managers, determines the strategy and value proposition 

of the outsourcer, and works with account managers to tailor strategies to 

specific clients. In a consulting firm, the engagement manager typically oversees 

a consulting engagement at the executive level. The role is often something of 

a rainmaker, wherein the director uses her industry contacts to gain access to 

decision makers within target companies. 

The role often requires at least 7 to 10 years of experience and significant 

understanding of supply chain management and logistics.

Real People Profiles 

Program Manager, Global Materials 

Education: MBA, supply chain management; MS, industrial engineering 

Experience: 4 years 

The program manager in global materials develops solutions to get raw materials 

and unfinished inventory to manufacture via air, sea, or ground transportation. 

Within a contract manufacturing firm, this means that the role is also one 

that requires client management and account management skills. “My job is to 

find the best way to get my clients’ materials to our manufacturing facilities and 

then to manage the carriers along the way,” an insider says. “The role is defined 

by change. There are always things that come up that chip away at what you 

thought was an optimal solution—so adaptability is key throughout supply chain 

management.” For instance, a new tariff or export tax might change the cost 

of manufacturing so much that you shift production to a facility in a different 

country, which necessitates, of course, shifting the entire supply chain. 

A Day in the Life of a Program Manager 

7:30 Pull into the office in Silicon Valley. 

8:30 Check e-mail; can’t resist replying to a rant from a B-school buddy. 

Prepare for my 9:00 a.m. conference call. Check in with my colleague in 

manufacturing to prep for the call. 

9:00 Call a customer and her team to get information on an RFQ they sent 

for materials and transportation on a product we already manufacture. 

They like us and are telling us what they’d like to see in a winning proposal. 

103 

On the Job

On the Job 

104 

10:00 Review what we heard on the call with my colleague and share with him 

my ideas for a proposal. 

10:30 Spend the rest of the morning doing analysis—we have a very metricsbased 

style of management. 

12:30 Lunch? It’s usually Indian food or the “Roach Coach,” two favorites 

here in glamorous Silicon Valley. Have another meeting this afternoon. 

1:00 Respond to a voice mail I received while I was out about a shipment of 

computer parts being held in Mexico due to improper documentation. 

It’s a relatively minor issue, but part of the job is making sure that the 

lines keep running and production doesn’t stop. Make some calls and get 

a contact in Mexico to work on resolving the issue. 

1:30 Join another conference call—this time we’re pitching a solution to an 

automobile manufacturer. With automobile manufacturing becoming 

ever more complex, it looks like a great market for us to grow into. 

2:30 Work on the proposal based on this morning’s call. 

5:30 Finish the proposal, send it out to my manufacturing colleague, and cc 

my boss. I spend the rest of the day responding to e-mails that piled up 

while I was writing the proposal. 

6:00 Head for home and pop into my apartment, a perfect “before” shot for 

Queer Eye for the Straight Guy.

Supply Chain Management Consultant 

Education: MBA; BS, mechanical engineering 

Experience: 4 years post-MBA 

Being an SCM consultant probably has more in common with being a consultant 

than with being an SCM professional. Typically, consulting firms are engaged 

chiefly to redesign business processes and integrate software applications. When 

implementing a system like SAP, a project can be marked in years. Luckily, the 

consultant typically moves on after the process design and strategy work is 

complete. Part of the currency of the consultant is his knowledge of clients 

within the industry. “I work primarily with technology manufacturers,” says an 

insider, “so, part of my value to clients is having seen the guts of most top 

technology firms. I think they value us [the consulting firm] because, as outsiders, 

we can make changes in their organization in a way that they can’t, because 

we’re smart, and because we know the industry and the software inside and out.” 

A Day in the Life of a Supply Chain Management Consultant 

9:00 Give myself a little break and arrive at the office late. The office this 

morning being Kuala Lumpur, a 16-hour time difference from the West 

Coast. Malaysia is a hub of technology manufacturing. Meet with the 

operations team of a large PC manufacturer. In this project, we’re working 

on integrating circuit board makers into their supply chain as part 

of a larger technology integration project. Along with our engagement 

manager and project manager (based in Singapore), I lead our introductory 

meeting. 

12:00 Use our lunch break to check on e-mail and follow up on some work 

for a previous project. 

1:00 The engagement manager and I meet with the VP of operations, a 

former consultant herself. We outline who we’ll need to talk to, the 

heads of this and that department, the workshops we’ll have to 

schedule, and the like. 

105 

On the Job

On the Job 

106 

2:00 Meet with the director of materials to determine the tariff issues involved 

with using suppliers from various Asian countries. Part of the trick of 

consulting is instilling trust with clients quickly. That is, you have to show 

them that you know what you’re talking about and convey confidence 

from the get-go. 

3:00 Tour the production floor. 

4:00 Drop in on the VP of operations again (planned of course) to give 

some initial impressions and thoughts and to see how many people’s 

calendars we’re on. 

4:30 Spend some hours “heads down.” Read a little e-mail, respond to urgent 

matters, but mostly note what went on during the day and process my 

thoughts—it’s important to have ideas quickly. 

7:30 Dinner and drinks with the client. 

9:00 Work on a PowerPoint presentation for the morning and then crash. 

The work is great for a few years, but you have to embrace life on the 

road. Some consultants talk of “going virtual”—that is, they travel so 

much that they let their leases lapse and live on the road.

Director, Materials Management 

Education: MBA; BS, industrial engineering 

Experience: 5 years pre-MBA in manufacturing 

The scope and level of responsibilities vary greatly according to the size of the 

company where you are working. The director of materials management at a 

mid-size medical device manufacturer, for instance, has responsibility over not 

only materials management, but also oversight over purchasing, inventory 

management, and distribution. “By far the most exciting part of my job is 

selecting vendors, negotiating contracts, and hooking these guys into our 

system,” says an insider. 

A Day in the Life of a Materials Management Director 

8:00 Get to the desk, check e-mail, and log into the ERP system. Though we 

assemble our precision devices in the United States, a lot of our suppliers 

are abroad, so there’s often a hot issue waiting for me when I get in. 

9:00 It’s Friday, so I meet with my team—a buyer, inventory analyst, planner, 

and operations manager. Our biggest concern right now is quality—our 

company makes machines that are embedded in the human body—so 

there’s little room for error. We debate a potential supplier that promises 

to have better quality. I assign our planner to do some research on the 

practical aspects of bringing in this supplier—cost, import issues, transportation 

issues, ability to meet our production schedule. We’re working 

together with quality engineering on this one. 

10:00 Meet with the COO (this is a small company—one of the good things 

about a small company is that you are very close to executive decisions) 

to discuss executing his plan to free a big chunk of cash flow. In this 

case, the issue is how we can reduce inventory costs. There’s also a plan 

to introduce a new implant device—I help in the product introduction 

decision process by providing some scenarios for the cost of inventory 

that we would need given different introduction times. 

11:30 Look over the weekly reports from my time and look for deviance from 

the metrics we set forth. Metrics-based management and Six Sigma are 

as strong now as ever. 

107 

On the Job

On the Job 

108 

12:00 Grab an empty conference room and eat a lunch my wife packed for 

me. Some guys from product development join me. Go back to my desk 

and check my fantasy football standing on the Web. 

1:00 Along with a quality engineer and materials engineer, I have a conference 

call with a potential supplier. 

2:00 Work on the service level terms on a contract for a supplier. 

4:00 Work on a presentation I’m preparing for the executive team regarding 

my strategy for reducing inventory costs over our product lines for the 

upcoming year. 

5:30 Do a final e-mail check before heading home.

Manager, Non-Retail Distribution 

Education: Bachelor of business administration 


“There’s a lot of talking on the phone on my job,” says the insider we spoke 

with. “A good part of the job is keeping suppliers and carriers working according 

to plan.” The non-retail distribution manager’s job entails managing all 

aspects of moving goods from suppliers to distribution centers for one of the 

country’s largest retailers. “Setting up the processes is one thing,” our insider 

says, “but much of the job is making sure that your freight bills are not out of 

whack and manufacturers are adhering to their service level agreements.” 

A Day in the Life of a Non-Retail Distribution Manager 

8:30 Arrive at the office and take care of the usual e-mail before continuing 

on with the rest of the day. 

9:00 It’s the end of the year, so I meet with the vice president of distribution 

to go over the tweaks I made for the 2004 budget. 

10:00 Call one of our vendors for private-label housewares to review their 

performance. They’re drifting dangerously close to the upper limits of 

their service level agreement. There’s no room for being a nice guy here— 

if they don’t supply us according to plan, then I get hell from the district 

managers at the retail level. Being a little hard-nosed, coupled with our 

position as one of the top retailers in the country, gets things moving 

fairly quickly. 

11:00 Have a meeting with one of our specialists on what messages to send 

out to our internal retail customers for the upcoming week. 

11:45 Early lunch at the corporate cafeteria. Work on selecting a protein-heavy 

meal for my Atkins diet. 

12:30 Check on the status of our various suppliers. 

1:00 Call with one of our largest freight carriers. I negotiate hard for a better 

rate for the coming year. For their part, they are anxious to get our business 

in the Northeast. I drive them down, but not as much as I would 

have liked (I’m thinking about my 2004 budget). 

109 

On the Job

On the Job 

110 

2:00 Review a scorecard on vendor performance built by my analyst. Except 

for the vendor I called in the morning, it looks good. Call my analyst to 

explain some discrepancies in the numbers. One of the good things 

about negotiating as part of your daily job is that you’re far more likely 

to get a private office. 

2:30 Work on retweaking the numbers from this morning’s meeting. 

3:00 Work on a presentation for the executive team on how to achieve cost 

goals in the coming year. Book a flight for a visit to a prospective backup 

freight shipper. Try to find a way to keep logistics costs in line. 

4:00 Calls to various West Coast carriers and vendors. 

5:00 Head to the sports club for a short workout before heading home. One 

of the best things about Minneapolis: You can afford to buy a home!

Inventory Analyst 


Experience: 1 year 

The inventory analyst spends her days analyzing historical data, forecasting 

inventory requirements, and supporting operations and marketing departments. 

“I spend most of my days either running reports for my manager or people in 

other departments or representing my department in cross-functional meetings,” 

says an insider new to the world of inventory management. “Sometimes the 

reporting can get tedious,” says the insider, “but it’s great exposure and a vital 

function in our business.” 

A Day in the Life of an Inventory Analyst 

8:30 The usual check of e-mail. 

9:00 Start on forecasts that my manager gave me yesterday afternoon for 

January. It’s probably our most exciting time, forecasting what the holiday 

rush will do to our January inventory. 

11:00 Serve as the voice of inventory at a marketing meeting for an upcoming 

promotion. 

12:30 Pile into the car with the other new hires and head out to the local deli. 

1:30 Meet with my manager to go over my inventory forecasts for January. 

Report to her the marketing team’s plans for upcoming promotions. She 

thinks the idea will ravage inventory, so I hang on for a conference call. 

They are locked on this, but marketing often wins. 

2:30 Follow up with changes to forecast, start on new analysis based on 

meeting with manager. 

5:00 Head home. Rest a bit before volleyball practice. I play in a local 

volleyball league (still trying to get a company team together). 

111 

On the Job

On the Job 

112 

Business Analyst 



The business analyst spends the better part of his days in meetings with clients, 

learning new software applications, documenting business processes and meeting 

results, and dealing with vendors. “Business analysts get stuck with a lot of 

the grunt work in the consulting world,” an insider says, “but the rewards are 

many—you learn more than anyone else at your level, you have a huge amount 

of responsibility, and the job is an incredible stepping stone to jobs within consulting 

and other industries.” The insider continues, “A good business analyst 

constantly gets job offers from client companies. They are dyeing for good 

people. I see my next step as business school.” Indeed, business analyst is the 

place where consulting firms groom their future leaders and bright-eyed young 

businesspeople see a fast track to a top business school or corporate life. 

A Day in the Life of a Business Analyst 

9:00 As usual, check e-mail. Call our corporate travel agent to get a flight for 

advanced SAP training next week. I have a desk at our client’s corporate 

office, where I’ve been parked for the last year. Luckily, it’s only an hour’s 

flight from my home office. 

10:00 Our client is one of the largest drug distributors in the world. We have a 

team meeting that includes myself, our project manager, two other analysts, 

a consultant, and about ten people on the client side. This meeting is 

just to discuss progress, issues, and the like. 

11:00 Meet with our project manager and discuss a client presentation she 

wants me to create based on my progress to date. 

12:00 Have lunch with my main client contact, the manager of Western 

Region Distribution, at a local tacqueria. We talk about her reporting 

requirements. 

1:00 Show my client a mock report and look for her feedback. Try to make 

my clients feel as involved as possible in the process.

1:30 Analysts are often given the task of planning training. I have a call with 

the warehouse manager to discuss who we should schedule for training. 

2:30 Lead a session with a marketing group to go over their system requirements. 

I’m careful to not promise too much from a system. 

5:00 Type up notes that we made on the butcher paper during today’s session 

with marketing. Talk to the distribution center manager again and discuss 

a site visit for the following day. 

6:00 Work on my status presentation for my project manager. 

8:00 Show the presentation to my manager. She quickly red inks a good portion 

of it. 

8:30 Our project team heads out for a steak dinner and drinks. Typically, it’s 

dinner with the team. Tasty, but I’ve gained 15 pounds since starting 

work for the firm. During dinner I talk to my manager about getting a 

recommendation from her for B-school. 

10:00 Back at the hotel working on changes to the presentation. In bed by 

midnight. 

113 

On the Job

On the Job 

114 

Logistics Planner 


Experience: Less than 1 year 

The logistics or materials planner coordinates the movements of raw materials 

and parts inventory with production cycles. The job is a typical entry-level function 

and leads roles within materials management and logistics. “This job gives 

me a chance to break into supply chain management,” says an insider. “I like 

working with real products and making things, which makes this job fun for me.” 

A Day in the Life of a Logistics Planner 

9:00 My life, if everything goes well, is pretty routine. We work on 4-week 

production cycles. Ideally, there aren’t many hiccups in the system. I get 

to work and hope the voice-mail light isn’t flashing. Check e-mail and 

log into our ERP [enterprise resource planning] system to see the status 

of the latest shipment of raw materials for the next production batch. 

10:00 Meet with my manager. She has me do an analysis of the quality of the 

materials that we receive. 

11:00 Have my daily meeting with the production group and find out what the 

production forecast for the next cycle is. 

12:00 Lunch at the Chinese restaurant—I’m a hot-and-sour soup junkie— 

down the road from our office. 

1:00 Log the requirements for the next shipments in our ERP system and do 

the analysis my manager requested. 

3:00 My manager requests another analysis on the costs of our raw material 

inventory over the last 6 months by supplier. 

5:00 Dash out to the parking lot and head home for the day.

Railroad Product Manager 

Education: MBA 


The railroad product manager is responsible for making sure that trains leave 

the station as full as possible and are operating at as profitably as possible. The 

product manager drives the creation and management of product strategy, and 

communicates that strategy to sales and other staff. Along with sales and account 

management staff, the product manager works with customers to develop specific 

offerings, making decisions on things like scheduling, pricing, and so on. 

“People who can make things happen, who get results, will do well in this position,” 

says an insider. “But to advance in any career with the railroad, you’ve got 

to be willing to go out into the field and learn the core business, railroad operations. 

And that can mean working long, unpredictable hours in a location 

where you’d really rather not be.” 

A Day in the Life of a Railroad Product Manager 

7:00 Arrive at work; check e-mail and voice mail. Learn about several issues 

that I’ll need to address today. 

7:30 Go to work attacking the first issue: a customer who’s complaining that 

they’re not getting enough space allocated to them on our trains. Pull 

our contracts with the customer; review. Call account manager to learn 

more about the issue. Visit our pricing analyst and our revenue analyst, 

then make a recommendation to the account manager: We can’t offer 

this customer any more space on our trains unless they agree to a rate 

increase. 

9:30 Look through operations reports to learn more about our shipping 

patterns, as part of ongoing analysis. 

10:00 A vice president calls me from a customer location to ask a question: 

The customer, who has special service requirements—in this case, the 

customer needs to ship dangerous materials—wants to know about 

capacity on one of our new lines. I go to our container planning folks 

115 

On the Job

On the Job 

116 

to learn whether we have the capacity the customer wants, and at what 

pricing. I also contact operations folks in the field, to learn whether we 

can in fact handle the customer’s special service requirements. Then I 

reply to the VP, telling him that we do have the capacity the customer 

needs, and filling him in on the pricing details. 

12:00 Lunch at my desk. 

12:30 Meet with my director and other team members, including an operations 

director and a reservations manager, to discuss why a train that morning 

had been far from full, and steps we can take to make sure that train 

performs better moving forward. 

1:00 Go to intermodal terminal to meet with an important customer who 

does a lot of business with us. Talk with the customer and with our 

people at the terminal to iron out the details of a new agreement with 

the customer. The customer’s trucks already do 25 percent of their daily 

pick-up volume between midnight and 4 a.m. We’re now going to give 

the customer unlimited access to the terminal between those hours, 

meaning its drivers will have shorter wait times for their pick-ups at the 

terminal, and that the customer will be able to offer speedier service to 

its own customers. In return, we reduce peak-time congestion at the 

terminal, and improve our 24/7 asset utilization. 

4:00 Head home from the terminal. 

4:30 Check e-mail from home to make sure nothing else has flared up. 

Continue work on some customer rate reviews, then finalize a customer 

communication about an upcoming storage rate increase. 

6:30 Send the customer communication to the customer service department 

for distribution to the relevant customers, then turn off the computer.

The Workplace 

Lifestyle and Hours 

Diversity 

Compensation 

Career Path 

Insider Scoop 

117 

The Workplace

The Workplace 

118 

Lifestyle and Hours 

Supply chain management is a function that resides across industries; therefore, 

lifestyle and corporate culture are somewhat industry-dependent. Of all the 

industries that supply chain management touches, consulting is one of the most 

taxing. Eighty- to 100-hour weeks are not foreign to consultants working in Big 

Four consulting firms. As well, those in on-the-front-lines careers in the field— 

for instance, operations folks in the transportation industry—often find themselves 

in jobs that can be quite demanding in terms of hours and work/life 

balance because they involve 24/7 availability to put out fires and make sure the 

trains are running on time. Within other industries, the work/life balance is more 

tenable. Even so, as supply chains become more integrated, far-flung nations 

become interconnected, and manufacturing becomes just-in-time, the likelihood 

of working longer or odd hours increases. 

With the exception of consulting and transportation operations, a firm’s culture 

is likely to have the greatest effect on the number of hours you must work. A 

startup, or a behemoth with a startup mentality like Amazon.com will certainly 

be more demanding of your time than the U.S. Postal Service. Of course, as 

you rise up the corporate ladder, a firm’s demand on your time will increase 

with every rung. 

Because supply chain management is becoming increasingly global, the field 

offers a multitude of opportunities for travel and overseas assignments. Often, 

new MBA recruits are offered the opportunity to go overseas on a management 

training rotation. Visiting a factory or supplier often means going to Southeast 

Asia, Latin America, and increasingly, Eastern Europe once a quarter. Those 

seeking a career in consulting, of course, can expect nearly 100 percent travel.

That said, companies with strong SCM competencies are often among Fortune 

magazine’s “100 Best Companies to Work For.” Within the manufacturing 

sector, IBM, Medtronic, and Harley-Davidson have all claimed a spot as a best 

place to work. Within the retail sector, both Home Depot and Starbucks regularly 

claim spots on the list. Other companies, such as Amazon.com, Nike, and 

Gap, are known not only for their business acumen, but also as good places to 

work (despite not attaching themselves to any particular list). As an insider at 

Amazon.com tells us, “This is the first job where I’ve really liked the people I 

worked with.” Nike and Gap insiders tell us similar tales. Within companies, the 

supply chain function tends to be practical versus theoretical, with the temperament 

of an engineer rather than a scientist. Creativity tends to be expressed 

through problem solving rather than the blue-sky speculation of the marketing 

world. Pay attention to the people you meet in these functions, because it’s 

likely you’ll be happiest if you find people just a little bit like you there. 

119 

The Workplace

The Workplace 

120 

Diversity 

While supply chain management and its affiliates logistics, distribution, and 

procurement aren’t exactly known as rainbows of diversity, the times, they are 

a changing. IBM and General Mills rank among the best places to work for 

minority women, according to Working Mother magazine. The U.S. Postal Service, 

Nordstrom, UPS, Procter & Gamble, and General Motors were all among the 

supply chain management-focused companies that made Fortune’s “50 Best 

Companies for Minorities” ranking in 2004, while General Electric, DaimlerChrysler, 

Ford, Intel, and Johnson & Johnson were all among those on Working Mother’s 

“100 Best Companies for Working Mothers” 2004 list. Hispanic Magazine named 

Altria Group, Toyota, Wal-Mart, and Federated Department Stores among its 

top 100 companies for Hispanics in 2004. 

On the flip side, most supply chain executives are still white and male. A 2003 

Ohio State University study of career patterns in logistics found that 91 percent 

of the logistics professionals polled in its survey were male, down from 95 percent 

in 1997. Part of the reason for the poor showing is the nature of supply 

chain management. Job functions tend to be highly specialized and require 

specialized schooling and certification; the SCM function can’t simply diversify 

by hiring from different functional groups. Furthermore, the career ladder is a 

rung-by-rung climb in supply chain management, making it difficult to fast 

track women and minorities into management positions. Nevertheless, companies 

are making efforts to increase diversity in the workplace. As one insider 

says, “There’s a real business case for diversity in our industry—it’s about solving 

problems—and the more angles from which you look at a problem, which 

diversity brings you, the more likely you are to be able to solve those problems

quickly and elegantly.” For women and minorities willing to brave a homogeneous 

field, there are real opportunities. Not only are large companies actively 

recruiting for diversity, but the ranks of SCM executives are aging, leaving a 

vacuum for ambitious professionals to fill. 

121 

The Workplace

The Workplace 

122 

Compensation 

The links in the supply chain are cast in gold, at least for those lucky enough to 

find themselves in executive roles within the field. In 2004, average compensation, 

including salary and bonus, for vice presidents was more than $231,000; for 

directors it was $141,000; for managers it was $97,000 (source: Ohio State 

University Career Patterns in Logistics Study, 2004). Needless to say, you’ll have 

to clock a significant number of hours in the industry before you reap those 

kinds of rewards. VPs and directors both logged on average more than 20 years 

in the industry, managers 13 years. 

According to a study by the Warehousing Education and Resource Council 

entitled 2004 Warehouse Salaries and Wages, in 2003 the median salary plus bonus 

for a director of logistics was $113,350. 

In general, after slumping during the recession of the early 2000s, salaries in 

supply chain–related job functions are on the rise. According to some, this is at 

least in part because companies are valuing their supply chain operations more 

highly as they see how a focus on supply chain management can boost the 

bottom line. 

Salaries vary significantly across industries. An insider says, “High tech pays far 

better than, say, basic manufacturing.” Indeed, computer manufacturers, pharmaceuticals, 

and medical device manufacturers offer the best remuneration within 

the manufacturing sector.

Undergraduate Salaries 

If you’re looking to buy that Mercedes-Benz straight out of college, you might 

want to look at a field other than supply chain management. It’s a field that 

requires a great deal of specialized knowledge, knowledge that most recent 

undergraduates don’t have. The exception to this is the consulting profession, 

wherein supply chain management pays comparable to other functional specialties. 

Undergraduate salaries range from $35,000 to $55,000. The broad range of 

starting salaries reflects four phenomena: range of industries, range of functions, 

geography, and potential and pedigree of the individual applicant. Engineering 

degrees and business degrees with SCM specializations tend to translate into 

higher starting salaries than generalist degrees. 

Graduate and MBA Salaries 

While many MBAs found their newly minted degrees to have little value in a 

depressed economy, SCM graduates fared relatively well. This is due in no small 

part to the specialized skill that the field requires. Average salaries are in the range 

of $75,000 (pre-signing bonus) for positions such as supply chain project manager 

and supply chain analyst. As with undergraduates, salaries vary greatly 

according to industry and job title. Choose carefully. Though you’re not trapped 

in an industry, transitioning between industries is not easy. “It’s not so much 

that you really have a different skill across industries; it’s just that the hiring 

managers think you do,” an insider says. 

Benefits 

When it comes to benefits, the supply chain function is all over the map. 

Benefits in supply chain management truly mirror the industries wherein they 

reside. Traditional manufacturing companies tend to offer generous vacation 

123 

The Workplace

The Workplace 

124 

and retirement packages. GM for instance, offers 14 paid days off a year, a 

standard 2-week vacation policy that then ratchets up to 5 weeks after 22 years 

of service. 401(k) plans are standard throughout manufacturing, but employermatching 

programs are less common. Technology and medical device manufacturers 

often offer matching 401(k) programs and stock benefits. Growth 

companies such as Amazon.com and Starbucks offer stock option packages to 

nonexecutives. The biggest perk unique to manufacturers and retailers derives 

from the nature of those industries—that is, they either sell or make products, 

which employees are eligible to receive discounts on. So if you work for Gap 

or Nike, you can get discounts on apparel and shoes. If you work at Starbucks, 

you can feed your addiction with a free pound of coffee every week. And you 

can get a hefty discount on your Jaguar if you work at Ford or your Saab if you 

work at General Motors.

Career Path 

While there is no single career trajectory in supply chain management, most 

insiders agree that the apex of the supply chain cosmos is vice president of 

supply chain management. The path has yet to be blazed for supply chain managers 

who attain the ranks of COO, let alone CEO. In the past this has been 

due to the fact that logistics positions have been very specialized roles. More 

recently, supply chain management has been a cross-functional role and has yet 

to gain traction as a set career path in most corporations. Some insiders have 

voiced frustration at this phenomenon, especially in Europe. “I found that 

because supply chain doesn’t ‘belong’ in the sense that marketing, finance, or 

operations have well-rooted places in the corporation, it is difficult to be heard 

and seen.” This is even truer in large corporations, which have a tendency to 

“stovepipe,” or not encourage, cross-functional communication. 

Unlike consulting or investment banking, where the path to partner averages 10 

years, the road to the executive ranks is a slow one. The median age of supply 

chain vice presidents is 49, which means the cream takes some 25 years to rise 

to the top in the field. The median age of directors is 48. Some back-of-theenvelope 

math shows that executives at the top of the field have a good 10 to 

15 years left in them. It is better to be a tortoise than a hare in this field; the 

path to middle and upper management can be excruciatingly slow. The trek to 

manager takes an average of 8 years and more than 15 years to director or vice 

president. 

The good and bad news is that supply chain roles are highly specialized. Not 

only is it somewhat difficult to cross over mildly different functional roles, but 

functional knowledge doesn’t transfer completely across industries. This means 

125 

The Workplace

The Workplace 

126 

that one can’t easily hop from one industry to the next—for instance, as a 

supply chain manager for Wal-Mart to one for BMW. While this means it is 

difficult to easily transfer across functions, it also means that there are fewer 

candidates nipping at your heels ready to take your job. 

Undergraduates 

Undergraduates tend to start as logistics planners, buyers, SCM analysts, customer 

support representatives, or inventory analysts. More difficult to obtain are roles 

as business analysts in consulting firms. 

MBAs 

MBA titles sometimes do not differ from those of undergraduates. For instance, 

an MBA might land a perfectly good job as a supply chain specialist. The difference 

between an undergraduate and an MBA job, other than remuneration, is 

level of responsibility. Additionally, MBAs often begin their careers in rotational 

programs, doing four 6-month stints in various SCM functions. The recent 

economic downturn, however, saw the cessation of many of these programs. 

Midcareer Professionals 

Midcareer professionals tend to stay within their industry and job function for 

the reasons mentioned above. This means that it’s extremely difficult for a midcareer 

professional to make an industry switch without significant retooling in 

terms of education and certification. Within an industry and a function, however, 

seasoned professionals tend to be welcomed.

Insider Scoop 

What People Really Like 

Change Is Your Friend 

“Change is relentless in supply chain management,” says an insider. Supply 

chains are so complex that as soon as you develop a solution, a variable will 

change, causing you to create a new solution. “It doesn’t allow you to stagnate, 

and that’s a good thing,” says an insider. 

The Real World 

“You deliver a real product; you can put it in your hand and touch it; it’s not a 

‘solution’ or some other intangible thing,” says an insider. Supply chain managers 

don’t just push bits and bytes, they are moving real things around the world. 

I’m Special 

The skills in the supply chain world are difficult to come by; this has a certain 

guild effect, making it difficult for outsiders to join. This protects supply chain 

management from hordes of job seekers looking to cash in on lucrative positions. 

On a Clear Day . . . 

SCM professionals have a nearly clairvoyant knowledge of the operations of 

not only their own company, but those of most others in an industry as well. 

In some cases, supply chain managers are the best forecasters of demand. 

127 

The Workplace

The Workplace 

128 

Cross-Pollination 

Supply chain management, when done properly, touches not only manufacturing 

and distribution, but also product development, marketing, and legal. “I 

feel that my exposure to these functions makes me much more marketable,” 

says an insider. 

International Bright Young Things 

Because supply chain management has become a truly global function, opportunities 

for international assignments, especially in Asia and Latin America, 

abound. 

Watch Out! 

Slow . . . 

The rate of advancement in supply chain management is glacial; it takes on 

average nearly a decade to rise to the rank of manager and 15 years to rise to 

director and VP levels. “It frustrates me how long it will take to get ahead,” 

says an insider. 

. . . and Low 

The conventional wisdom in the field is that SCM roles lead to a VP-level position. 

For the ambitious souls who dare to dream about executive management 

positions (CEO, COO), there are probably other functional areas that are more 

likely to fulfill those dreams. 

Where Do I Belong? 

Because supply chain management is a relatively new field with no set functional 

area, insiders find it difficult to get the support they need within an 

organization.

Square Pegs, Round Holes 

Supply chain roles tend to be highly specialized. The problem with developing 

such a specialized skill set is that it limits the number of jobs you’re qualified to 

do. “I was lucky to find one of the five jobs in the world I was qualified to do 

here,” says one insider with a PhD in supply chain management. 

Change, the Enemy 

Change is a double-edged sword. Just as insiders thrive on it to make their jobs 

interesting, change also tires them. “You just wish things would stay the same 

for a while,” says an insider. 

Singin’ the Workin’-in-Transportation-Can-Mean-Crappy-Hours Blues 

You’d better love your job especially if it’s in the field—in transportation operations. 

Why? Transportation is a 24/7 business. Trucks and trains are crisscrossing 

the continent every minute of every day. To make sure this continues 

to be the case, people in some areas of the transportation industry work some 

pretty crazy, unpredictable hours. Achieving work/life balance can be a challenge 

as a result. 

129 

The Workplace

Getting Hired 

The Recruiting Process 

Education, Requirements, and Certification 

Acing the Interview 

Getting Grilled 

Grilling Your Interviewer 

131 

Getting Hired

Getting Hired 

132 

The Recruiting Process 

Most firms we spoke with hire both seasoned and green hires—so not all 

recruiting comes from universities. In fact, during the recession, many firms 

turned to experienced hires, who suddenly became affordable, to meet most of 

their recruiting needs. If you’re an experienced hire with the right skill set, your 

best bet is to find a headhunter or look directly at company websites for jobs. 

For undergrads and MBAs, most companies have a set of target schools from 

which they recruit. If a company you’re interested in doesn’t recruit, call the 

company directly to schedule an interview. You’re better off calling than using 

the Web in this case, as several years of recession have created a tsunami of 

online applicants. For MBAs, there are a number of companies with rotational 

positions and management training roles. But many of the full-time slots in such 

programs are taken up by people who have gone through summer internships. 

Undergraduates 

Most major companies populate their entry-level positions through college 

recruiting drives. The best way to find out about these opportunities is through 

your career center or on a company’s website for a roster of target schools. Many 

smaller companies don’t have the resources to conduct extensive on-campus 

recruiting drives, or they do so only at a few campuses. This shouldn’t deter you 

from applying; many candidates have landed jobs this way. Nevertheless, you’ll 

need to be persistent in this economy. 

Once you land a position, you’ll find that most large firms have a rotational 

program and some type of “university” for new recruits. Companies offer very 

challenging work from the get-go. “It’s a constant learning process here,” says 

an insider, “I learned more here in the first month of work than I did in my 

entire undergraduate career.”

MBAs 

Most major companies do have established MBA recruiting programs, but 

hardly any have the recruiting juggernaut found in financial services and consulting. 

Firms that recruit heavily tend to have spots open for all disciplines— 

operations, finance, marketing, and human resources in addition to supply chain 

management. As they do with undergraduate recruiting, most firms do the 

majority of their hiring from a list of target schools. If the firm doesn’t hire at 

your school, with some tenacity you may still be able to schedule an interview. 

Your chances of landing an interview at a firm that doesn’t recruit at your 

school increase substantially if you have a technical background. 

133 

Getting Hired

Getting Hired 

134 

Education, Requirements, 

and Certification 

Typically, SCM recruiters are not looking for generalists, even at the undergraduate 

level. Most firms and organizations have a select group of programs from 

which they recruit, and those programs, such as Arizona State, the University of 

Tennessee, and the University of Wisconsin at Madison, tend to offer degrees 

in supply chain management and logistics. If you aren’t in a school at which the 

firm recruits, an internship might get you in the back door. Because the market 

is soft now, firms are demanding industry and functional experience even for 

entry-level positions. In the MBA world, firms look for supply chain coursework 

or dedicated supply chain programs. 

Certifications aren’t required, but they do help in a slack market. Common certificates 

are Certified Purchasing Manager (CPM) and Certification in Production 

and Inventory Management (CPIM). Nearly one quarter of purchasing professionals 

hold a CPM certification, and nearly 10 percent hold a CPIM.

Acing the Interview 

The SCM function covers a wide landscape both in terms of types of companies 

and types of jobs; there is no single set of interview questions that will 

work for all people at all times, or even most people most of the time. Moreover, 

there is wide variability in how companies within the industry interview. 

Ford, for instance, conducts initial interviews at career fairs at its target schools— 

screening for fit, credentials, and general competency—and then flies candidates 

to a “Leadership Conference,” basically a group interview session, to evaluate 

candidates in more depth. Firms vary in their use of behavioral and case questions. 

More and more firms are moving toward a group interview and roleplaying 

process in second-round interviews—they are looking for leaders and 

communicators and people who fit in with the culture. 

Firms have a Six Sigma mentality and are looking for candidates with built-in 

attention to quality. You should be meticulous in every part of your selfpresentation. 

You also need to be able to communicate. “That’s really what 

we’re looking for. If you can’t communicate your solution to anyone, how is it 

a solution?” an insider says. That means you need to be able to communicate 

both in oral and written contexts. In addition, people skills are paramount and 

political savvy is key—as a supply chain manager, you’re very likely to be working 

with people who have been on the job 30 years longer than you have and 

possibly with little advanced education. This means you need to be able to deal 

with people unlike yourself. Expect interviews to cover these social aspects of 

work as well as your technical or subject matter expertise. 

135 

Getting Hired

Getting Hired 

136 

Though no one presumes you to be an expert in the industry, you can only help 

yourself by getting familiar not only with the vocabulary of the industry, but 

also with the basic structure and issues of the industry. Your interviewers will 

appreciate that you speak the same language and don’t require any translation 

or dumbing down. Understanding the industry and the jargon will give you an 

advantage over your fellow interviewees—it helps to go native. Companies such 

as Dell, Target, Starbucks, Wal-Mart, Nike, and FedEx all have entire books 

dedicated to the company’s narrative, from which you can mine useful gems for 

interviews. If you are interviewing at GE or one run by a GE alumnus, be sure 

to read Jack Welch’s Jack: Straight from the Gut; the book gets straight to the heart 

of GE culture. We’ve also included at the end of the guide references to articles 

and books that have supply chain management as a central theme. It can 

only help you to be informed about the role, the company you’re interested in, 

and the industry in which that company participates. By doing your homework, 

you’ll show employers that you’re serious about working for them while adding 

subtlety and complexity to your understanding of the role for which you are 

interviewing. For your own benefit, it’s worth knowing who is best in an industry 

and which company is best for you. 

Once you’re up to speed on the industry, you can investigate job functions in 

your discipline and match them against your skill set. Since companies often 

rotate new hires through jobs as part of leadership programs in their first few 

years at the company, they often look for aptitude and general competency 

rather than a particular skill set. In any case, you’ll want to show your interviewer 

that you’re able to hit the ground running and execute as soon as possible. 

While personal relationships don’t hold the manufacturing, retail, or logistics 

industries together the way they do in the entertainment industry, venture capital, 

and other less-structured work environments, you should check to see whether 

you have any contacts at the company you’re interested in. Continue by research-

ing the pedigrees of the executive management team. Companies often hire a 

disproportionate number of candidates from their alma maters. Set up an informational 

interview to get the scoop on the company, culture, and interview 

process, as well as how to get your resume in the right hands. This is especially 

critical in a time when recruiters are inundated with resumes from job-hungry 

candidates. 

137 

Getting Hired

Getting Hired 

138 

Getting Grilled 

Here are some all-purpose questions that interviewers often ask. Many more 

will apply specifically to your position or industry. 

• What about supply chain management excites you? 

• How would you apply Six Sigma practices to this position? 

• What are some of the most promising trends for supply chain management? 

• What are your short- and long-term goals? 

• Where do you see yourself in 5, 10, or 15 years? 

• Tell me about a time you had to use persuasion to reach your goals. 

• Tell me about some of the ways you communicate with your peers when you 

work in a group. 

• When you work in a group, what role do you play? 

• Tell me about a time when you worked in a group of people with diverse 

backgrounds. 

• Tell me about a time when you had to motivate a team to finish a project. 

• Tell me about how you deal with unstructured problems. 

• Tell me about a time when you took a leadership role on a project. 

• Give me an example of a time when you set a goal and the steps you took to 

reach it. 

• Give me an example of a time you didn’t meet your goal (or failed).

Grilling Your Interviewer 

The following are good general questions that suit most companies. You’ll also 

want to think of questions specific to the sectors and companies you are targeting. 

• What are some of the effects that mergers and acquisitions have had on your 

industry? 

• To what degree have you applied lean manufacturing principles to your 

organization? What improvements have you seen? 

• What are some of the representative career paths of people who started at 

the company 5, 10, 15 years ago? 

• How does supply chain management fit in your organization? What incentives 

do people outside the function have to follow the recommendations of 

supply chain management? 

• How will your company perform in a protracted downturn? 

• How are your business units integrated? What are some of the ways different 

business units interact? 

• What are some of the career avenues I can explore 5 years down the road? 

139 

Getting Hired

For Your Reference 

Supply Chain Management Terms 

Articles 

Books 

Professional Organizations and Communities 

141 

For Your Reference


142 

We gathered the following terminology, articles, books, and online resources 

from our interviews with industry insiders and through our own research. They 

provide a grounding in the jargon and classic literature of supply chain management 

as well as a jumping-off point for you to explore the function of supply 

chain management and logistics, businesses for whom logistics plays a significant 

role, and topical themes and events within supply chain management. 

Supply Chain 

Management Terms 

The following are terms widely used in supply chain management. Because 

knowledge of Six Sigma and lean manufacturing techniques are becoming 

highly sought after in supply chain managers, we included terms germane to 

those disciplines. 

3-PL (third-party logistics). An organization that performs logistics functions 

using its own assets and resources for another company or organization. 

4-PL (fourth-party logistics). 4-PL practitioners perform the role of master 

integrator and synchronizer of multiple firms across various industries leading 

to optimal supply chain operations. 

5 S. An approach to elimination of waste based on five principles: sort, straighten, 

sweep, standardize, and self-discipline. They make less sense in English than

they do in Japanese as they strain to capture the meaning of the Japanese originals 

in words beginning with S. 

7-step process. A problem-solving process developed at Teradyne containing, 

of all things, 7 steps: 

1. Select a theme. 

2. Collect and analyze data based on that theme. 

3. Identify the root cause. 

4. Plan and implement a solution. 

5. Confirm results. 

6. Standardize the solution. 

7. Reflect on and critique the process. 

Acceptance. An agreement to purchase goods under specified terms. 

Activity-based costing (ABC). A managerial accounting technique that, unlike 

traditional managerial accounting, breaks down the costs of a product by the 

set of activities used to produce that product. For instance, rather than lumping 

all effort to produce a product into labor, ABC calculates the cost of each of 

the significant activities required to produce a product from the customer order 

to delivery. 

Agent. A person who is authorized to conduct business on behalf of another 

person or organization. 

Alignment. The process of matching supplier capability with market or user needs. 

Andon board. Based on the Japanese word for lamp. A visual device, such as a 

colored light, in a production area displaying the current status of the produc- 

143 

For Your Reference


144 

tion system and alerting team members to emerging problems. For instance, a 

green light would mean okay; yellow, a problem emerging; red, a major problem. 

Part of the Andon concept is that any worker on the assembly line can change 

the status of the assembly line if he or she detects a problem. 

Approved vendor list (AVL). Vendors with which a company has contracts to 

purchase items. 

Automated storage and retrieval system (AS/RS). A system that automatically 

stores and retrieves inventory at greater density and faster than manual operations. 

Balanced plant. A plant that balances its capacity and resources directly against 

market demand. 

Backhaul. A return trip for a carrier in which it carries a load; as opposed to 

deadhead, in which the carrier has an empty load. 

Benchmarking. The process of measuring performance and results and 

comparing them to those of similar organizations. 

Bill of lading. A legal document between carrier and shipper used to conduct 

operations when goods are transported. 

Bill of materials (BOM). A listing of all of a product’s subcomponents. 

Bottleneck. The process in a production line that limits production. For instance, 

the painting process in an automobile assembly plant might only have a throughput 

of two cars an hour, where all of the other processes have throughputs of 

more than four cars an hour. The painting process, therefore, would be the 

bottleneck. A production line’s maximum throughput is equal to its bottleneck. 

Break bulk. Breaking down a shipment from a manufacturer into smaller 

components (e.g., a case of cola is broken down by a retailer and sold by the 

can to end users).

Breakthrough. A dramatic improvement in a work process. 

Capacity. The amount of shipping space available on a specific means of 

transportation, such as a truck or fleet of trucks or a train. 

Carrier. An entity that transports goods under contract for another entity via air, 

land, sea, or some combination thereof. 

Cash on delivery (COD). A shipment that must be paid for upon receipt by the 

buyer. 

Channel conflict. A disagreement among members of a supply chain. For 

example, a computer manufacturer may have conflict with its resellers if it 

decided to sell directly to consumers through a company website, thereby 

alienating the resellers. 

Constraint. Any factor that limits production capability. 

Covariance. The phenomenon wherein one variable affects other variables 

within the same group. 

Cross docking. The process of moving items from an inbound vehicle to an 

outbound vehicle without putting them into storage. For instance, a distribution 

center might break down a shipment of diapers from a manufacturer and load 

those diapers onto trucks immediately bound for retail stores. 

Cycle time. Time required to complete a set of operations. 

Demand chain. Supply chain, as expressed from the viewpoint of an end user. 

The term is in favor because it suggests that market demand should drive 

production. 

DC. Distribution center. 

Downstream. Refers to the transactions required to move a product from a 

company to its customer. For a manufacturer, this means moving a product to a 

145 

For Your Reference


146 

retailer or a wholesaler; for a retailer, it means moving a product to a consumer, 

or end user. Compare to Upstream. 

Economic order quantity (EOQ). Size of order that minimizes fixed and ordering 

costs. 

Flow production. The process of production in small quantities and sequential 

steps, rather than in large batches. 

Free on board (FOB). Shipped at a rate that includes delivery and loading. 

Freight forwarder. A person who dispatches shipments via common carriers 

and books or otherwise arranges space for those shipments on behalf of 

shippers and processes the documentation or performs related activities 

incident to those shipments. 

Gray market. Market in which a product is sold other than that which the 

manufacturer intends. 

Great circle route. The shortest distance between any two points on the earth. 

Intermodal. Transportation using a combination of carrier types, for example, 

rail and motor vehicle. 

Inventory. Inventory includes all raw material, work in process, and finished 

goods that have not yet been sold to a customer. 

Just in time (JIT). A production methodology whereby inventory is kept at a 

minimum by producing only what current demand requires. The three principles 

of JIT are takt time, flow production, and pull systems. Dell’s made-to-order model 

of doing business is an example of JIT. JIT production not only frees up capital 

that would be otherwise tied up in inventory, it is also critical in industries where 

inventory obsolesces quickly—as in the computer industry.

Kai aku. Change for the worse—never a good thing (lean manufacturing). 

Kaizen. Continuous improvement through incremental improvements. 

Kanban. Japanese for card, a resupply order attached to a product, triggering 

production further up the supply chain. 

Lead time. The time it takes to produce a single product, from customer order 

through manufacturing to shipment. 

Lean manufacturing. The approach developed by Toyota of shortening the 

production time of a product from customer order to delivery through the 

elimination of waste and incidental work. 

Less than truckload (LTL). A carrier that accepts only small (less than truckload) 

shipments for a trailer. 

Mass customization. The practice of developing customized products on 

standardized components. For instance, a clothing manufacturer might develop 

a line of clothing with multiple jacket styles (customization) but with uniform, 

both in color and size, zippers and buttons—thereby allowing the producer to 

minimize inventory while maximizing product variety. Mass customization 

works on the principle of carefully selecting what components of a product 

will be nonstandard. 

Pareto chart. A problem-solving tool in the form of a vertical bar graph showing 

the bars in descending order of significance from left to right. A Pareto 

chart focuses improvement activity on a few major causes rather than on the 

many insubstantial causes. This framework is called the Pareto principle. The 

meme has spread with viral efficiency throughout business and organizations 

as the 80/20 rule, in which 80 percent of the problems are accounted for by 

20 percent of causes. 

147 

For Your Reference


148 

Picking. The process of picking items from storage to fulfill customer orders. 

Pick-to-light. System by which a light board instructs warehouse pickers what 

and how much to pick. 

Poka-yoke. A mistake-proofing device or procedure to prevent a defect during 

order-taking in the supply chain process. 

Process. A series of definable, repeatable, and measurable steps used to 

complete an action. 

Program evaluation review technique/critical path method (PERT/CPM). Project 

management techniques based on achieving the minimum length of time to 

perform linked or dependent activities. 

Pull system. As-needed production based on signals (kanban) from downstream 

processes that tell the upstream processes when to operate. 

Purchase order (PO). Request by a buyer to a seller for a certain number of items. 

Push system. A system in which production occurs and “pushes” product 

down the supply chain regardless of product demand and downstream factors. 

Push systems tend to be inventory rich and risk overproduction. 

Reverse logistics. The field of managing returns from customers to the 

manufacturer. 

Radio frequency identification (RFID). A type of label or badge that is read 

electronically rather than optically. The reader doesn’t have to touch the label to 

read it. Typical storage content is 126 bits of information. Some RFID labels 

are re-writeable. That is, new information can be inserted. The cost per label is 

higher than that of a printed bar code label, though the cost of RFID technology 

is decreasing steadily.

Request for quote (RFQ). A request by a buyer for a seller to respond with a 

quote for a particular quantity of items. 

Roll on, roll off (RO-RO). A ship from which trucks can drive on and off. 

Run chart. A data plot of a process over time used to detect trends and errors 

in production. 

Safety stock. Inventory kept on hand in between orders to account for 

uncertainty in the order fulfillment process. 

Sensi. An outside master who is brought in to assist in production (lean 

production). 

Shrinkage. Term for discrepancy between actual inventory and inventory on 

record. Shrinkage is loss due to theft, spoilage, breakage, or shipment to the 

wrong location. 

Shusa. The team leader responsible for designing a new product and putting it 

into production (lean production). 

Six Sigma. The mantra of almost every operating organization; a methodology 

for increasing control of production processes and thereby increasing customer 

satisfaction. Sigma refers to the Greek symbol for standard deviation. Six Sigma 

means controlling a process to six standard deviations, which translates into 3.4 

defects per million. In other words, a maniacal focus on quality. 

Slotting. The process of deciding where items reside in a warehouse or retail 

store. For instance, high volume items might be kept near the loading dock. 

Stock-keeping unit (SKU). A product identifier associated with a purchasable 

product. 

149 

For Your Reference


150 

Suboptimization. The process by which productivity gains produced by 

optimization in one activity are offset by productivity losses in another. 

Supply chain management. The process of optimizing the events in the life of 

a product from manufacture to retail. Sometimes supply chain is extended to 

include product development. 

Takt time. The desired time between output of units of production, synchronized 

with customer demand. This principle is key to lean production. 

Total quality management (TQM). A philosophy of process improvement based 

on five tenets: customer focus, continuous improvement, measurement, total 

involvement, and systematic support. 

Upstream. The flow of goods and services from a supplier to a company. For a 

manufacturer, this typically entails moving inventory and component parts into 

its manufacturing facilities; for a retailer or distributor, it usually involves moving 

finished goods from a manufacturer to a distribution center. See Downstream. 

Utilization. The percentage of a resource’s capacity that is used. 

Waste. In lean production, the things that make production fat. Specifically, 

there are seven wastes in lean production. The Japanese term for waste is muda. 

1. Overproduction 

2. Transportation 

3. Motion 

4. Waiting 

5. Processing 

6. Inventory 

7. Defects

Whiplash effect. The disconnect between supply and demand in manufacturing 

that produces hyperbolic swings, or whiplash, in inventory. The effect works 

because of the lags between retailer, wholesaler, distributor, and producer. Each 

agent works independently, meeting his own needs and padding inventory as 

needed, which produces wild fluctuations in inventory. 

Zone skipping. The process by which a supplier uses its own transportation to 

haul goods partially to a customer, then uses a public carrier such as UPS to 

deliver the final leg of the journey, thereby avoiding “zone” charges for the 

shipper. 

151 

For Your Reference


152 

Articles 

The following articles offer a glimpse of the kinds of supply chain management 

issues and trends that have been on the mind of the popular press recently. 

“RFID: A Key to Automating Everything” 

Perhaps one of the best articles written about RFID. Want offers a clear and 

insightful explanation of the technology, technology and business hurdles, and 

privacy issues involved in RFID. 

Source: Roy Want, Scientific American, January 2004. 

“The Wal-Mart You Don’t Know” 

The article explores Wal-Mart’s treatment of its suppliers. 

Source: Charles Fishman, Fast Company, December 2003. 

“Look Who’s Building Bimmers” 

A look at outsourcing of production in the automobile industry. 

Source: Gail Edmondson, BusinessWeek, December 1, 2003. 

“B2B, Take 2” 

The promise of integration of supply chain participants through b2b (i.e., 

business-to-business) software and vertical webs is beginning to show, without 

the hype of the dot-com era. 

Source: Olga Kharif, BusinessWeek, November 25, 2003.

“I Want It Yesterday” 

How the British firm Wolseley Plc. uses supply chain to get materials to U.S. 

construction crews. 

Source: Richard C. Morais, Forbes, November 24, 2003. 

“The Battle to Secure the Supply Chain” 

Two years after the attacks of 9/11, security has become a major factor in 

international supply chain management. 

Source: Andrew Gillies, Forbes, October 29, 2003. 

“The Watershed Moment for RFID” 

With Wal-Mart’s embrace of RFID, the die is cast for the future of the 

technology. 

Source: Eric Peters, News.com, September 7, 2003. 

“Smart Tags for Your Supply Chain” 

McKinsey’s discussion of RFID technology and its implications. 

Source: Alex Niemeyer, Minsok H. Pak, and Sanjay E. Ramaswamy, McKinsey Quarterly, 

No. 4, 2003. 

“Bill Gates, Entertainment God” 

A discussion of Microsoft’s role in the promotion of RFIDs. 

Source: Jeffrey M. O’Brien, Wired, July 2003. 

“Death to Barcodes” 

The advent of RFID promises to obsolesce barcodes. 

Source: Michael Mechanic, Wired, May 2003. 

153 

For Your Reference


154 

“Cautious Optimism in North America: Rail Transport Outlook” 

Thanks to globalization and the increase in demand for intermodal 

transportation, the railroad industry in North America is optimistic about 

business in coming years. 

Source: Edward R. Hamberger, International Railway Journal, April 2003. 

“Army Stores” 

The military learns a thing or two about supply chain management from Wal-Mart. 

Source: Nelson D. Schwartz, Fortune, April 14, 2003. 

“Jeep Builds a New Kind of Plant” 

DaimlerChrysler’s Jeep builds a factory that ties suppliers to the assembly line. 

Source: Philip Siekman, Fortune, November 11, 2002.

Books 

The following books are not so much how-to manuals as they are lively accounts 

of life within supply chain management and the companies that rely heavily on 

supply chain management to succeed. Many of these volumes are considered 

classics, because of their lively telling, the management principles they illustrate, 

the unique historical situation they describe, or any combination of the three. 

The Goal: A Process of Ongoing Improvement 

Eliyahu M. Goldratt and Jeff Cox (North River Press Publishing, 1992) 

This narrative dramatizes one plant manager’s discovery of operations techniques 

and subsequent turnaround of a factory in the Rust Belt. A B-school classic. 

Jack: Straight from the Gut 

Jack Welch with John A. Byrne (Warner Books, 2001) 

Jack Welch’s best-selling book about his years at GE. A must for anyone going 

into GE or a company run by GE alumni—from Home Depot to Solectron. 

Harvard Business Review on Managing the Value Chain 

Kim B. Clark, et al. (Harvard Business School Press, 2000) 

Supply chain viewed through the various lenses of Harvard Business Review 

writers. 

Sam Walton, Made in America 

Sam Walton with John Huey (Bantam, 1993) 

The man who created the country’s largest retailer recounts one of the great 

business stories of the 20th century. 

155 

For Your Reference


156 

The Six Sigma Way: How GE, Motorola, and Other Top Companies Are 

Honing Their Perfomance 

Peter S. Pande, et al. (McGraw-Hill, 2000) 

Pande, et al., delve into the ways in which GE and Motorola have used the 

process improvement in their organizations to achieve stellar operating and 

financial results. Six Sigma refers to the tenant of statistical process control that 

allows for only 3.4 parts per million standard deviation from a defined process. 

What Is Six Sigma? 

Peter S. Pande, et al. (McGraw-Hill, 2001) 

A shorter primer on Six Sigma than the above selection.

Professional Organizations 

and Communities 

American Society of Transportation and Logistics, Inc. (www.astl.org) 

Association of Professional Material Handling Consultants (www.mhia.org) 

Council of Logistics Management (www.clm1.org) 

Institute for Supply Management (www.ism.ws) 

The International Society of Logistics (SOLE) (www.sole.org) 

Stanford University Supply Chain Forum (www.stanford.edu/group/scforum/) 

Supply-Chain Council (www.supply-chain.org) 

The University of Tennessee College of Business Administration Forums 

(http://bus.utk.edu/IVC/) 

157 

For Your Reference

WETFEET’S INSIDER GUIDE SERIES 

JOB SEARCH GUIDES 

Getting Your Ideal Internship 

Job Hunting A to Z: Landing the Job You Want 

Killer Consulting Resumes! 

Killer Investment Banking Resumes! 

Killer Cover Letters & Resumes! 

Negotiating Your Salary & Perks 

Networking Works! 

INTERVIEW GUIDES 

Ace Your Case: Consulting Interviews 

Ace Your Case II: 15 More Consulting Cases 

Ace Your Case III: Practice Makes Perfect 

Ace Your Case IV: The Latest & Greatest 

Ace Your Case V: Return to the Case Interview 

Ace Your Interview! 

Beat the Street: Investment Banking Interviews 

Beat the Street II: I-Banking Interview Practice Guide 

CAREER & INDUSTRY GUIDES 

Careers in Accounting 

Careers in Advertising & Public Relations 

Careers in Asset Management & Retail Brokerage 

Careers in Biotech & Pharmaceuticals 

Careers in Brand Management 

Careers in Consumer Products 

Careers in Entertainment & Sports 

Careers in Human Resources 

Careers in Information Technology

Careers in Investment Banking 

Careers in Management Consulting 

Careers in Manufacturing 

Careers in Marketing & Market Research 

Careers in Nonprofits & Government 

Careers in Real Estate 

Careers in Specialized Consulting: Health Care, Human Resources, 

and Information Technology 

Careers in Supply Chain Management 

Careers in Venture Capital 

Consulting for PhDs, Doctors & Lawyers 

Industries & Careers for MBAs 

Industries & Careers for Undergrads 

COMPANY GUIDES 

Accenture 

Bain & Company 

Boston Consulting Group 

Booz Allen Hamilton 

Citigroup’s Corporate & Investment Bank 

Credit Suisse First Boston 

Deloitte Consulting 

Goldman Sachs Group 

J.P. Morgan Chase & Company 

Lehman Brothers 

McKinsey & Company 

Merrill Lynch 

Morgan Stanley 

25 Top Consulting Firms 

Top 20 Biotechnology & Pharmaceuticals Firms 

Top 25 Financial Services Firms

Who We Are 

WetFeet is the trusted destination for job seekers to research companies and industries, and 

manage their careers. WetFeet Insider Guides provide you with inside information for a successful 

job search. At WetFeet, we do the work for you and present our results in an informative, credible, 

and entertaining way. Think of us as your own private research company whose primary mission 

is to assist you in making more informed career decisions. 

WetFeet was founded in 1994 by Stanford MBAs Gary Alpert and Steve Pollock. While exploring 

our next career moves, we needed products like the WetFeet Insider Guides to help us through the 

research and interviewing game. But they didn’t exist. So we started writing. Today, WetFeet serves 

more than a million job candidates each month by helping them nail their interviews, avoid illfated 

career decisions, and add thousands of dollars to their compensation packages. The quality 

of our work and knowledge of the job-seeking world have also allowed us to develop an extensive 

corporate and university membership. 

In addition, WetFeet’s services include two award-winning websites (WetFeet.com and 

InternshipPrograms.com), Web-based recruiting technologies, consulting services, and our 

exclusive research studies, such as the annual WetFeet Student Recruitment Survey. Our team 

members, who come from diverse backgrounds, share a passion about the job-search process and 

a commitment to delivering the highest quality products and customer service. 

About Our Name 

One of the most frequent questions we receive is, “So, what’s the story behind your name?” The 

short story is that the inspiration for our name comes from a popular business school case study 

about L.L. Bean, the successful mail-order company. Leon Leonwood Bean got his start because 

he quite simply, and very literally, had a case of wet feet. Every time he went hunting in the Maine 

woods, his shoes leaked, and he returned with soaked feet. So, one day, he decided to make a 

better hunting shoe. And he did. And he told his friends, and they lined up to buy their own pairs 

of Bean boots. And L.L. Bean, the company, was born . . . all because a man who had wet feet 

decided to make boots. 

The lesson we took from the Bean case? Lots of people get wet feet, but entrepreneurs make 

boots. And that’s exactly what we’re doing at WetFeet.

Careers/Job Search 

Supply chain management plays a crucial, if somewhat 

unheralded, role in commerce. Supply chain managers keep the goods 

moving from vendors to manufacturers to retailers and into the hands of end users. This cross- 

functional role requires specialized training and a long-term commitment, and supply chain managers 

are typically well compensated for their trouble. As the economy recovers, companies are looking to 

increase their investments in supply chain management, forming a bright hiring picture for entry-level 

and experienced candidates with the right skill set. 

Turn to this WetFeet Insider Guide to explore 

• The skills and education you’ll need to get started in this long-term career. 

• Recent trends in the field and what they mean for job seekers. 

• The industry lingo you’ll need to master to sound like an experienced pro in your interviews. 

• Profiles, key numbers, and recent milestones for top manufacturing, retail, and logistics and 

transportation companies that rely on supply chain management to succeed. 

• The lifestyle, salary, and perks you can expect as you move up the career ladder. 

• Typical job descriptions and career paths to help you target your search. 

• Where to turn for even more information on supply chain management. 

WetFeet has earned a strong reputation among college graduates 

and career professionals for its series of highly credible, 

no-holds-barred Insider Guides. WetFeet’s investigative writers 

get behind the annual reports and corporate PR to tell the real 

story of what it’s like to work at specific companies and in 

different industries. www.WetFeet.com

Careers In Supply Chain Management 2004 - Supply Chain Online

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?