N E W S 14 July 2016 Professor warns: make pie don’t steal it To get more revenue, you can either grow your piece of the pie or, alternatively, grow the pie. “Growing your piece involves stealing market share from others, which is all too often the mindset of New Zealand companies,” says Professor Tava Olsen is Director of the Centre for Supply Chain Management at the University of Auckland Business School. “We frequently see Kiwi companies competing in their own backyards, when really they should be focussed on the international competition. A classic example of this is the red meat industry where sheep are trucked up and down the country - at significant cost - because processors are all competing for a decreasing supply of lambs.” Growing the pie, says Ms Olsen, usually involves collaboration. “The head of a major international company once said that strategic partnering used to mean stealing revenue or pushing cost onto someone else in the supply chain, but that anyone still viewing it that way was ‘a pig at the trough’. There are still many in New Zealand who view collaboration that way.” Overseas, the trend is catching on, though. IBM interviewed some 400 supply chain executives from across the world and found that in most cases, at least a quarter had implemented co-operative practices with suppliers, customers, planners and deployment partners. In Australia and New Zealand, 12% of executives reported sharing real-time electronic data, but in every other statistic, we lagged behind significantly. “What companies should be aware of is that clever contracting – for example, revenue sharing – can achieve a centralised optimal profit with a win-win allocation to both parties,” says Ms Olsen. “What such contracts can do is establish incentives for supply chain partners to improve performance of the entire chain. Imagine the transportation savings possible in the red meat industry if contracts were set up that incentivised sending lambs to the nearest processor.” The University of Auckland Business School has a master class in strategic supply chain management on September 29-30 and will run its third Strategic Supply Chain Management (SSCM) Programme next year. The latter is a six-month, five-module programme designed to actively develop mid-career supply chain professionals and prepare them for future leadership roles. Led by Ms Olsen and Professor David Robb, the SSCM programme is supported by a range of academics, senior supply chain executives and business practitioners, as well as the experience of visiting Professors Nicole De- Horatius (Chicago Booth School of Business) and Edwin Keh (Wharton) to offer international insight to the subjects. The master class is designed as a taster for this course but also an important standalone introduction to supply chain strategy. Tava Olsen University of Auckland Business School’s master class in strategic supply Chain management, September 29-30. Contact Darilyn Kane 09 923 4862, d.kane@ auckland.ac.nz. NATIONAL INITIATIVE IGNITES FEMALE STUDENTS INTO TECH Young New Zealand female students have the opportunity to be mentored by high profile technology companies at Shadow Tech Day in Christchurch, Wellington and Auckland over the next three months. More than 230 students will take part – an increase from about 45 students in previous years. Careers NZ is assisting with Christchurch’s Shadow Tech Day which offers engineering mentorship on top of its IT mentor opportunities. During Shadow Tech Day each student is mentored by a female tech professional with the aim of expanding the student’s knowledge of opportunities and shifting any negative perceptions they may have for a range of tech careers. http://transform.net.nz/ STEEL AGENDA ON THE HORIZON The SCNZ Steel Agenda AGM & Conference 2016, which will be held at The Old Church in Napier on Friday, September 16. This year’s Steel Agenda event will form part of the 10th anniversary celebrations and promises a a mixture of forums, SCNZ AGM, gala dinner and our inaugural Apprentice of the Year presentation. Among the planned events, delegates will have the opportunity to visit the local Weldwell Factory to get a unique insight into the work of New Zealand’s only manufacturer of arc welding electrode, which has a 60 year history of providing innovative welding products and solutions to industries throughout New Zealand, Australasia and the South Pacific. The Prime Minister’s Science Prizes Enter now! The five prizes recognise the impact of science on New Zealanders’ lives, celebrate the contribution of current scientists and encourage those of the future. ENTRIES CLOSE 16 SEPTEMBER www.pmscienceprizes.org.nz Entries are now open for all five prizes: Prime Minister’s Science Prize / Prime Minister’s MacDiarmid Emerging Scientist Prize / Prime Minister’s Science Teacher Prize / Prime Minister’s Science Communication Prize / Prime Minister’s Future Scientist Prize* *Please note Future Scientist Prize closes 3 October New eligibility criteria and guidelines can be found at www.pmscienceprizes.org.nz EN071
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