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IBM–Penn State partnership supplies both with benefits By Karen L. Trimbath
	An informal partnership established between Penn State and IBM will support future educational and research endeavors in the areas of logistics and supply chain management, both of which directly impact today’s global economy, say program participants.   The business logistics and supply chain management partnership will benefit faculty and students in The Smeal College of Business by enhancing education, research, job recruiting and curriculum development. In turn, IBM seeks to gain feedback from Smeal College faculty, constructively influence the educational process in the field of supply chain management and share the findings of the Penn State programs with its executives.   Although the initial known value is more than $160,000, the full value will be determined as the partnership is further developed, Ginny Newman, senior client development manager, Outreach Office of Client Development, said. Newman wrote the proposal for Penn State in response to IBM’s invitation to be considered as a partner institution.   The partnership is a natural fit for both partners, Dr. Gene Tyworth, head of the Department of Business Logistics, said.   “Many good synergies already exist between Penn State and IBM,” he added. “IBM has established a strong presence here. Its executives interact with our faculty and students. Its recruiters seek out our finest students. It’s also a corporate partner for the Center for Supply Chain Research and the eBusiness Research Center.”   Penn State is one of three schools chosen for a Tier One-level partnership, in addition to similar partnerships with Michigan State University and Arizona State University. IBM will partner with these schools for continuing and distance education, funded research projects and student recruiting.   Penn State was selected because of its nationally recognized expertise in supply chain research, its strong recruiting relationship with IBM and its commitment to diversity, said IBM’s Stu Reed, vice president of integrated supply chain development and deployment, and Linda Cantwell, vice president of global procurement.   “This partnership allows us to work directly with the faculty and students to help develop a curriculum that promotes supply chain skills that are essential to our business. It provides an important bridge between theory and the practical implementation of supply chain processes and gives us access to world-class talent,” Reed said. “For example, we recruited more employees for our supply chain organization from Penn State last year than any other school.”   Penn State will help develop the skills of existing IBM employees through Penn State World Campus offerings in logistics and supply chain management and the new iMBA. Both programs have new IBM student enrollments due to the promotion program set up through the partnership. In addition, an education program is being planned for IBM executives later this year; it will be developed and delivered by Penn State Executive Programs.   “The Penn State partnership team has proven that it’s willing to take risks and be innovative,” Cantwell added. She is providing advice on curriculum development at the University from an applied perspective. “We respect and appreciate the University’s views on what is leading edge in supply chain, and its curriculum gives us valuable insight. In return, IBM can suggest curriculum enhancements that will help students make the leap beyond the traditional manufacturing environment to information technology and other services-based industries.”   Penn State faculty members involved in the partnership include Tyworth, Dr. Skip Grenoble, executive director of the Center for Supply Chain Research, and Dr. John Coyle, professor emeritus, Department of Business Logistics.   Founded in 1989, the Center for Supply Chain Research is an interdisciplinary research community of scholars and practitioners dedicated to shaping practice in logistics and supply chain management in today’s converging economies.   As the center’s first Tier-One sponsor in supply chain, IBM has had a “tremendous impact” on the center’s major areas of activities, according to Grenoble.   “IBM is one of our oldest sponsors, and its support is providing a fantastic opportunity for the center,” Grenoble added. “We were very proud to have been selected for the partnership.”   Through the partnership, IBM is sponsoring a research program on the simultaneous optimization of supply chain flows by a single partner in the chain. The work will be conducted by Dr. Donald Warsing, assistant professor of business logistics; Dr. Douglas Thomas, assistant professor of business logistics and operational management; and Xueyi Zhang, doctoral candidate in business logistics.   Why is IBM focusing on supply chain management? The answer lies in e-business, according to Reed. The Internet enables IBM to quickly transfer large amounts of information to its suppliers, helping pave the way for customized manufacturing to keep production costs down. In keeping with its renewed focus on building a more efficient, responsive supply chain operation, earlier this year IBM consolidated all of the various supply chain functions, including procurement, systems manufacturing, logistics and information technology into one organization.   “E-business is happening. We live it everyday. IBM is a living laboratory,” Reed said.
© 2002 Outreach Communications,   Outreach & Cooperative Extension,   The Pennsylvania State University phone: (814) 865-8108,   fax: (814) 863-2765,   e-mail: outreachnews@outreach.psu.edu