Lunch and Learn with General Mills
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1 Department of Lunch and Learn with General Mills Cameron MacKenzie Assistant Professor July 20, 2017
2 Resume Assistant Professor, Industrial and Manufacturing Systems Engineering, 2015 present Assistant Professor, Defense Resources Management Institute, 2012 present PhD in Industrial Engineering, 2012 MS in Management Science and Engineering, 2009 Senior Associate, The Cohen Group,
3 Research focus Decision and risk analysis Relevant topics to General Mills Supplier selection Contamination in agriculture supply chains Supply chain disruptions and resilience 3
4 Supplier selection STEP 1: Form objectives hierarchy with KPIs derived from the SCOR metrics STEP 2: Form value functions STEP 3: Assess trade-off weights STEP 4: Develop overall measure STEP 5: Perform cost-effectiveness analysis 4
5 Objectives hierarchy: What do you care about? Maximize supplier effectiveness Max reliability On-time deliveries Capability compatibility On-quantity deliveries Perfect condition Documentation accuracy Max responsiveness Order fulfillment SCAR resolution time Max agility Upside adaptability Upside flexibility Downside adaptability Max asset management Cash-tocash cycle time Return on supply chain fixed assets 5
6 Supplier effectiveness Supplier 8 Supplier 7 Supplier 6 Supplier 5 Cost-Effectiveness Analysis Supplier 4 Supplier 3 Supplier 2 Supplier Reliability Responsiveness Agility Asset Management Efficiency 6
7 Cost-effectiveness analysis Cost-Effectiveness Analysis 7
8 Contamination in agriculture supply chain Previous research modeled how a fresh produce supply chain could manage contamination in the supply chain Translate qualitative factors into a mathematical model Traceability, product type, communication, topological structure 8
9 Dole s production of spinach 9
10 Future DHS center for cross-border and supply chain threats Proposal on livestock disease, in collaboration with ISU s Center for Food Security and Public Health Model systemic impacts of animal diseases on food and agricultural supply chains Simulation of disease spread in livestock Model consumer behavior Assess economic and business impacts Integrate model into a decision-making tool 10
11 Supply chain disruption and resilience Inventory on hand Customer loyalty Time when suppliers facilities reopen Selling price How much to produce? Satisfy demand Cost of alternate suppliers Maximize profit in current period Value 11
12 Supply chain resilience Resilience: withstand, absorb, and successfully recover from a disruption to operations Can be related to complexity of the supply chain Investigate factors that make a supply chain resilient Metrics for supply chain resilience How to smartly allocate resources to increase resilience 12
13 Questions for discussion What concerns do you have in General Mills supply chain? How does General Mills currently select and evaluate suppliers? How does General Mills manage risk? What type of visibility does General Mills have into its supply chain? Do you think mathematical models can be helpful to General Mills in this area? 13
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