FALL 2015 | VOLUME 1, EDITION 2
Supply Chain Innovation
THE BULLWHIP
A n executive. A factory floor manager. A truck driver. They're seemingly unrelated careers,
but they all share something in common. They're in the field of operations, and operations
is the backbone of every business.
What is Operations?
Operations is the field of changing inputs into outputs. It's a broad definition, but a field as broad as
operations requires such ambiguity. A historic example of operations is Henry Ford and his creation of
the assembly line1. This process revolutionized the realm of operations and allowed businesses to
streamline their manufacturing processes. Today, for companies like Amazon who handle a massive
volume of packages every day, efficiency must be one of the firm's top priorities. Because of this
evolving need for efficiency, companies are always looking to trim fat from their operations, and
programs like Six Sigma, a statistical approach to streamlining processes, have been developed2.
That's the definition of operations in the traditional sense, but operations is everywhere in the business
world. One example of non-traditional operations is sourcing, the act of obtaining product for a busi-
ness. Think about a catering company who needs to buy food. Getting food to create dishes involves
operations. Transporting these goods, through ways such as plane, train, or ship, is operations.
Finally, the process of hiring workers to carry out these tasks is also operations. These fields may not
involve cardboard boxes or factory conveyor belts, but they do deal with the operations of the
business, which is what a business needs to function.
Career Opportunities
U.S. News and Reports puts three careers directly related to operations in the top ten of their list of
"Best Business Jobs.”
1. "Just in Time." Shmula. Shmula LLC, 23 Mar. 2007. Web. 12 Oct. 2015. <http://www.shmula.com/fords-contribution-to-just-in-time/371/>. 2. "What Is Six Sigma?" ISixSigma. N.p., n.d. Web. 12 Oct. 2015. <http://www.isixsigma.com/new-to-six-sigma/getting-started/what-six-sigma/>. 3. "Operations Research Analyst." US News Money. U.S. News & World Report LP, n.d. Web. 11 Oct. 2015. <http://money.usnews.com/careers/best-jobs/operations-research-analyst>. 4. "Logistician." US News Money. U.S. News & World Report LP, n.d. Web. 11 Oct. 2015. <http://money.usnews.com/careers/best-jobs/logistician>. 5. "Business Operations Manager." US News Money. U.S. News & World Report LP, n.d. Web. 11 Oct. 2015. <money.usnews.com/careers/best-jobs/business-operations-manager>.
Operations Research Analyst3 Logistician4 Business Operations Manager5 Position
#4 #6 #10 Rank
The people who break down
existing systems and look for
opportunities to improve the
efficiency of the business.
The workers responsible for
behind-the-scenes planning of
transporting materials. Heavily
involved with supply chains.
The point person in any
business, managers oversee the
operations of any business,
including hiring and contracting.
Description
$74,630 $73,400 $96,430 Salary
27% 21.9% 12.9% Growth Rate
Above Average Above Average Above Average Upward Mobility
Average Low Above Average Stress Level
Bachelor’s Bachelor’s/Master’s Degrees & Experience Qualifications
1 | THE BULLWHIP | FALL 2015
THE BULLWHIP
“Education is
learning what
you didn’t
even know
you didn’t
know.”
- Daniel J. Boorstin
In This Issue
Golden Corral Guest
Speaker: Risk Man-
agement Discussion
Supplier Working
Relations - Why Are
They Important?
Supply Chain Case
Competition
Second Edition— A Word from the Editors Dear Reader,
Our Vision & You Thank you for supporting The Bullwhip! Our hope is that reading about the exciting
things Operators—that is operations students—have done or learned will inspire you
to join The Bullwhip team and contribute what makes you, your club, and uni-
versity special. Our earnest desire is that this newsletter would create some-
thing rare—a bullwhip effect of students having an increasingly greater impact on their
peers, schools, and workplaces, supported by the best wisdom and knowledge other
students and schools around the world have to offer.
Contribute to the Spring Edition by January 15th
Space in the spring edition of The Bullwhip has already begun to fill up! Reach out to
us by January 15th if you are interested in contributing or have an idea for an
article. Our contact information can be found on page 6. We look forward to
hearing from you!
Sincerely,
Elliot Orenstein Jacob Baldwin
Editor-in-Chief UNC Operations Club President
Abdulaziz Shemna | Geoffrey Bell | Grady Hale | Maria Blanchard | Ryan Wydra
The Bullwhip Executive Team
A global newsletter collaboration of undergraduate operations students Volume 1 | Edition 2
THE BULLWHIP | FALL 2015 | 2
This year, the Wharton Supply
Chain Organization was fortunate
to host Mr. Telly Smith, Vice
President of Purchasing and
Distribution at Golden Corral. Mr.
Smith flew in from North Carolina
to share his experiences.
Risk Management & Analytics
Mr. Smith worked his way up from
washing dishes at Golden Corral
to directing large-scale purchasing
for the entire franchise. Due to his
diverse background, Mr. Smith
focused his presentation on a
holistic approach to supply chain
management and specifically risk
management. He explained that
due to the large role the Golden
Corral franchise plays in the beef
and corn market, he staggered
purchases to avoid increasing
prices.
risk, though: if the price of beef
rises even higher, then he will have
to pay an even higher premium to
meet demand.
Student Experience
Mr. Smith involved students in a
very direct manner through his
case study. Mr. Smith’s passion for
supply chain management and his
interactive teaching style
undoubtedly excited students’
interests in supply chain and
helped us gain insights into how
classroom knowledge can translate
into solving practical problems.
Last year in 2014, Golden Corral
revenues were $1.735 billion,
generated from both franchise
and company-owned stores.
Given the incredible volume of
the operation, controlling food
costs is of the utmost priority.
Through an interactive case
study involving beef and corn
pricing, Mr. Smith explained how
to balance risk today with risk
tomorrow. Mr. Smith must decide
how much corn and beef to buy
ahead of time and how much to
purchase during the year. If he
thinks the price of beef is
unusually low, he will likely
purchase most of Golden
Corral’s beef for the year now to
lock in that low price. However, if
he thinks the price of beef now is
high, he may wait to purchase
beef. Waiting to purchase is a
Golden Corral first opened in 1973 in Fayetteville, NC and is now America’s #1 buffet
Golden Corral Guest Speaker: Risk Management Discussion Pavan Patel, Univ. of Pennsylvania, Wharton School of Business
3 | THE BULLWHIP | FALL 2015
Supply Chain
Case Competition
Katie Fineout, Univ. of
Minnesota, Carlson
School of Management
The National
Undergraduate Supply
Chain Case
Competition was a
competition created by
Dr. Steven Huchendorf
(University of
Minnesota, Carlson
School of Management)
in the spring of 2012.
The third annual
competition in spring of
2015 had fourteen
participating colleges
and universities
competing for $10,000
in cash prizes.
Local Minnesota
corporations such as
3M, Land O’Lakes,
Cargill, C.H. Robinson,
and Target, among
several others,
contributed as sponsors
and partners to ensure
a successful weekend
filled with intense
competition, supply
chain comradeship, and
professional networking
with top-performing
students. According to
Dr. Steven Huchendorf,
the competition
provides a “unique
learning experience
designed to educate,
(continued on page 5)
As any supply chain management
professional would tell you, main-
taining supplier relations is a key
driver in increasing the company’s
success. If a company has a posi-
tive working relationship with their
partners, it is easier to work to-
gether and solve problems more
efficiently, which provides benefits
to both companies in the long run.
Dr. John Henke, president of
Planning Perspectives Inc., real-
ized the importance of these busi-
ness relationships and decided to
capitalize on the idea of measur-
ing different aspects of supplier
relations in the automotive indus-
try. Dr. Henke’s management con-
sulting firm specializes in buyer-
supplier working relations. They
produce a major annual study
called the Annual North American
THE BULLWHIP | FALL 2015 | 4
Supplier Working Relations – Why Are They Important?Monica Topolovec, Univ. of Michigan-Dearborn
Automotive OEM-Tier 1 Supplier
Working Relations Index® Study,
also known as the WRI®. This
study measures the working rela-
tions that exist between the six
major North American OEMs and
their Tier 1 suppliers, serving as
a benchmark for supplier working
relations in the automotive indus-
try. The five measured compo-
nents of the WRI®, measured on
a scale of 0-500, include supplier
-company relationship, company
communication, company help,
company hindrance, and supplier
profit opportunity.
Supplier-Company
Relationship
The goal for a company and a
supplier is to strive for a partner-
(continued on page 5)
http://www.prnewswire.com/news-releases/2013-annual-oem-supplier-study-shows-automakers-lack-of-focus-has-stalled-improvements-in-supplier-relations-207165371.html
ship, rather than an adversarial rela-
tionship. This means that the two com-
panies hold a high level of trust be-
tween each other and have a positive
overall working relationship.
Company Communication
The aspect of company communication
builds on the idea of mutual trust and
understanding between the two com-
panies. Open and honest communica-
tion ensures transparency so that the
manufacturer and supplier can under-
stand each other’s issues and process-
es right away.
Company Help
Company help means that the manu-
facturer gives to suppliers and works
with them to reduce costs and improve
the quality of products, rather than de-
manding improvements without provid-
ing support. The more help that the
manufacturer provides in achieving the
goals set out for suppliers, the more
likely it is for the supplier to be able to
meet those requirements.
Company Hindrance
The WRI® measures company hin-
drance. Companies should strive to
give their suppliers flexibility in meeting
objectives, as well as allow suppliers to
be involved in the product development
process. For example, late and exces-
sive design changes and specification
changes may hinder the supplier’s abil-
ity to effectively execute goals put forth
by the manufacturer.
5 | THE BULLWHIP | FALL 2015
Supplier Profit Opportunity
Supplier profit relations means that
when asking for price reductions and
wage cuts, the manufacturer takes
into consideration supplier profit mar-
gins and ensures that the supplier will
still be able to make a good return.
This also means that the manufactur-
er shares savings, covers any sunk
costs, and also rewards high perform-
ing suppliers with new/continued busi-
ness.
The 2015 Annual Automotive Industry
Study shows the supplier working re-
lations for the top six OEM’s in North
America and their direct cause-effect
relation with OEM’s operating profits.
Toyota and Honda scored the highest
on the WRI®, with an average im-
provement of 8.7% over last year’s
score. According to the study, if Ford,
General Motors, FCS US and Nissan
had improved as much as Toyota and
Honda in supplier relations, they
would have earned $2 billion more in
operating profit last year!1
Dr. John Henke’s WRI® is an im-
portant indicator to show companies
where they stand on each of the five
components of supplier relations;
knowing the results of this test is im-
portant, but knowing how to interpret
the results and how to improve suppli-
er working relations is key for im-
proved productivity, higher revenues,
and an overall more positive outlook
for the company.
excite, and promote the
supply chain and
operations field of
study.”
This year’s competition
focused on a case study
with 3M, which
examined 3M Footprint
Optimization, Supply
Chain Innovation for
North America and
Beyond. Christian Kerr,
awarded the
Outstanding Presenter
of the competition, said
the challenge was a
“classic case of
strategic positioning and
understanding how to
handle negative
implications of
aggressive expansion.”
Samson Seiffert,
another member of the
Minnesota team, was
able to touch on some
of the strategies his
team used; “We
focused on
implementing a hub
strategy, which allowed
3M to analyze their
current manufacturing
sites and consolidate
plants with like-
processes, close plants
with negative growth,
and create a new plant
that leveraged
sustainable technology.
If implemented, our
recommendations
would have led to a total
cost savings of $24
million and increased
efficiencies across the
(continued on page 6)
1. http://www.ppi1.com/wp-content/uploads/2015/05/2015-WRI-Press-Release-May-19.pdf
North American supply
chain.”
The case produced some
outstanding overall
recommendations and the
winning teams of the
competition were as
follows:
1. UNC-Chapel Hill, Kenan-
Flagler Business School
2. University of Minnesota,
Carlson School of
Management
3. Iowa State University,
College of Business
4. Texas Christian
University, Neeley School of
Business
If you are interested in
competing in the next case
competition, contact the
University of Minnesota
Supply Chain Operations
Club ([email protected]).
About UNC Operations Club The Undergraduate Operations Club at Kenan-Flagler Business School is a
student-led organization that serves the needs of undergraduate students
interested in the operations discipline or operations-related careers.
Our goal is to educate students on operations careers, provide connections to
potential employers and faculty resources, and foster an environment of
intellectual curiosity and practical guidance to better prepare them for their careers
and lives beyond college.
The operations concepts and knowledge students gain in the classroom are
complemented by the club with hands-on, real-life experience through facility
tours, guest speakers, recruiting events, interactive activities, case competitions,
and meet-and-greets with Operations Department faculty and alumni in the field.
A Special Thanks UNC Operations Club and The Bullwhip could not exist without the faithful support
of its members, sponsoring professors, and partners. We’d like to thank the
following for their support of the club and the second edition of The Bullwhip:
Brianna Norris Professor Anne Marucheck Jen DeLong
Professor Lauren Lu Gustavo Armada Danielle Rubin
In Next Edition:
ZF Friedrichschaften
Case Study
An article from your
club or university!
Contact us by
January 15th
THE BULLWHIP | FALL 2015 | 6