Supply chain degrees

Supply chain degrees Study finds universities make strides to turn out future logistics executives.

By Chris Gillis

      Many of the nation's top university business schools now offer courses and even degrees in supply chain management, but which programs provide a sufficient level of education sought by today's American shippers?
      AMR Research recently conducted a comprehensive survey to figure this out. In June, the Boston-based firm published the results of what it calls the first dual industry-academic study of U.S.-based university programs focused on supply chain management.
      'Our assessment showed many strong programs, with innovative teaching approaches and relevant research being conducted,' wrote AMR's David Aquino and Bob Kraus in their report, Leading U.S. Supply Chain Programs, 2009. 'Unfortunately, most universities are only partially meeting the most pressing needs from industry, with supply chain programs on average teaching only five of 11 academic areas needed, inconsistently applying supply chain technology, and not ensuring sufficient applied knowledge transfer.'
      For the study, AMR surveyed 126 companies and 19 universities. The study drilled into earlier AMR analyses, which found 11 key components of 'talent attribute stations' necessary for an advanced supply chain, including:
      ' Seven 'functional stations' (plan, source, make, deliver, customer management, post-sales support, new product development, and launch).
      ' Four 'enabling stations' (strategy and change management, performance measurements and analytics, technology enablement, and governance).
      'Unfortunately, supply chain programs are not preparing students well enough in these stations,' the AMR researchers said.
      The study also highlighted that only 25 percent of the surveyed university programs require students to participate in internship programs with companies as a prerequisite for graduation.
      'Successful supply chain programs offer students opportunities to experience more of the stations within the curriculum and deliver applied knowledge through simulation, timed projects, cooperative opportunities, and meaningful internships. The best programs create a more fully formed supply chain professional that can make a quick transition from recruit to productive member of the new organization,' AMR said.

Best Schools. While many university supply chain programs are still in their infancy, some have evolved into highly structured offerings in recent years.
      AMR found that Pennsylvania State and Michigan State universities had the highest survey scores, followed closely by Arizona State, Ohio State, the Massachusetts Institute of Technology, University of Tennessee, and Georgia Tech.
      Penn State has more than 800 students enrolled in its program and 29 full-time professors focused on supply chain management, while Michigan State, Ohio State, Arizona State and the Tennessee have more than 400 students and about 20 full-time professors each associated with their programs. Both Penn State and Michigan State also offer executive education programs that graduate about 1,000 students annually.
      Many of the top schools surveyed by AMR require their students to take a certain minimum number of supply chain management classes. For example, Michigan State offers 39 supply chain courses and requires students to take at least eight to graduate.
      The AMR study also found a number of 'bright spots' among the surveyed universities with smaller supply chain programs. The University of Wisconsin, for example, has corporations grade its performance in talent development. Syracuse University in New York, which has the oldest known supply chain management program in the country, rewards corporate innovators through its prestigious Harry E. Salzberg Medallion. Rutgers University of New Jersey started an undergraduate supply chain management program this summer.
      Overall, the AMR study noted that all the university programs have room for improvement to meet increasing demands of the supply chain field.
      'Industry has impressed upon us that top-performing universities need to have an expansive span of control, a wide breadth of program offerings, and the ability to provide delivery methods that drive applied knowledge,' the AMR study concluded. 'Industry wants recruits that can more quickly transition to the challenges of supply chain management, and this can only come through required internships, simulation and technology being embedded in the classroom, team/timed exercises, and less dogma around legacy teaching methods.'
      AMR believes that industry could do a much better job at clarifying to universities what it requires from supply chain management education programs to fill its ranks.

'Career Clarity.' Supply chain management has sprung from the backroom to the boardroom in recent years as this activity has become increasingly important to corporate success. To find qualified individuals with sufficient analytical and technical skills to manage complex logistics programs, companies are turning to universities for their recruits.
      However, defining and promoting the topic as a lucrative career path is still a struggle for the nation's top university business schools.
      'We're finding a lack of career clarity,' AMR's Aquino said in an interview. 'Universities need to do a better job at defining why supply chain management is important to businesses and how it could lead to an amazing career.'
      AMR noted that MIT and the University of Michigan had the highest average base salaries at $116,000 and $100,000, respectively, for their supply chain graduates.
      Professor Gene Tyworth, chairman of Penn State's Supply Chain and Information Systems Department, said most freshmen have little awareness of the supply chain management profession. The supply chain department attracts students through initiatives that 'elevate awareness,' such as the Z-Pod Game, career fairs, and orientation sessions. The department also runs its own corporate placement service and surveys recent graduates about salaries, position titles, companies, and job location, and posts those results on its Web site. 'The strong reputation of our program, coupled with the successful placement of our graduates, helps us attract top students,' Tyworth said.
      Masters of Business Administration students often bring important work experience to university supply chain programs.
      'The supply chain track is second to finance in popularity' at Penn State, Tyworth said. 'Our online professional masters program, which was launched in fall 2007, attracts mostly older seasoned professionals, including individuals at the director or VP level. An interesting observation is that some of these professionals may have already earned a masters degree in another field.'
      Tyworth advocates the need for academic-industry partnerships to promote advancements in supply chain education. These partnerships would include elements such as industry advisory boards, field research opportunities for both faculty and students, participation in case studies, internship support, guest speakers, and mentoring. Industry/company endowments for clinical professorships and scholarships would also help attract talent to the field, he said.
      For more details about the Leading U.S. Supply Chain Programs, 2009 report or other research, access AMR's Web site at www.amrresearch.com.