AI have a broad interest in the strategy and manage- ment of supply chains, and how supply chain management can transform a company’s competitive position,
customer value proposition, and financial performance.
This is the focus of my graduate course at MIT and my sessions in our executive programs. In addition, I have a long-standing interest in how supply chain management and
transportation innovations create new patterns of business
activities and economic development—and I have advised
MIT graduate students on their doctoral theses on this
subject.
QYou’ve said your research indicates that supply chain management has become the driving force in most
companies’ financial performance. Could you expand on that?
AToday, leading companies are developing supply chain innovations that have a profound positive impact on
their strategic positioning and financial performance,
including crucial areas like revenues, costs, profitability,
cash flow, asset productivity, and risk management. Supply
chain managers can create revenue increases of 30 to 40
percent or more, even in highly penetrated customers, and
can turn around the profitability of the surprisingly large
number of marginal accounts that characterize virtually all
companies.
QYou’ve also said that supply chain managers have an opportunity today to step up and make a bigger contribution to their companies. Can you point to any executives who have done that?
AAt the Council of Supply Chain Management Professionals’ conference in San Diego last year, I
served on a panel with the top supply chain officers for P&G,
Pepsi, and Chiquita, all of whom were using supply chain
management to drive major gains in profitability and market share. They’re doing this in four ways: First, by carefully
selecting the target customers who would be most appropriate for highly integrated relationships. Second, by working
intensely and creatively with those customers to improve the
customers’ sales and profitability. Third, by using these customer gains to pull through more of their own sales, while
using the integrated processes to reduce their own costs. And
fourth, by taking a portion of their increased profitability
and market share (reduced costs and increased sales) for
themselves, but also investing a significant portion into
resources to further create target customer gains—in the
process renewing and accelerating this virtuous cycle.
QAs a professor, what advice do you give to young peo- ple considering a career in logistics or supply chain
management?
AI offer three pieces of advice. First, do what you really enjoy, and you will be happy and materially successful. Second, think broadly and creatively about opportunities to make things fundamentally better. And third, learn
and practice the art of change management. Today, supply
chain management is the prime area in which a thoughtful
manager can make a really significant contribution to his or
her company’s strategy and financial performance. Be creative and enjoy the process.
Greg Javor
MUCH LIKE A COFFEE ROASTER STRIVing to create the perfect blend, Greg Javor,
senior vice president, global logistics of
Starbucks Corp., tries to achieve the ideal
balance—of stability and change, and of
leadership and helping employees develop
their potential.
Javor, who’s responsible for Starbucks’
logistics, distribution, transportation, and
customer service worldwide, has been successful on all counts. Since joining the company in 2008, he has proved to be an effective change leader,
building a new logistics team, improving the cost base, and
raising service levels. He is now developing a global network
strategy to handle future growth and channel changes. In his
previous job, Javor redesigned the North American logistics
network for ICI Paints (The Glidden Paint Co.).
For all his many achievements, Javor is not one to take
all the credit. Ask him about his proudest achievements,
and he’ll talk not about himself but about the team of pro-
fessionals who work under his direction. It’s
no surprise, then, that the Ohio State
University grad is involved in Starbucks’
program for developing logistics and supply
chain talent.
QHow did you get involved in the field of logistics?
ALogistics was a new business field of study at Ohio State, and I added it as a
second major to increase my employment
opportunities after graduation. My first role was as a warehouse supervisor trainee for a public warehousing company. I enjoyed operations, managing large teams, and the
diversity my roles in logistics afforded me.
QYou’ve introduced major supply chain redesigns at wo companies. Why were they necessary?
AThe redesigns we have accomplished were based on the need to integrate an updated supply chain design
