Faculty Spotlight: Steven A. Melnyk

Last Updated July 15, 2019

As a professor, consultant, researcher and prolific author, Steven A. Melnyk has long been a leading voice in the supply chain and operations management fields.

It’s evident in the array of awards and accolades his work has garnered: Distinguished Research Lecturer, Keynote Speaker, Associate Editor of the Year and Teaching Excellence Award, to name just a few.

Melnyk’s contributions are a key link in the success of Michigan State University’s supply chain management programs, repeatedly ranked the nation’s best by U.S. News & World Report and honored as the No. 1 Industry Value Leader for 2018 by Gartner.

But tread carefully when mentioning the approach of another major milestone in his MSU career.

“Thank you for reminding me that I have been at MSU for almost 40 years,” Melnyk deadpans. “Next time I see you, I will hit you with my walker.

“But, seriously, the art of education has changed greatly. When I began, education was basic and one-way. That is, the instructor talked, and the class listened. Now, it is a two-way discussion.

“In the past, there was no need to prove the relevance of what you taught,” he says. “Now, every time I come to class, I have to show that what I am talking about is current and relevant.”

Timeliness and relevance are hallmarks of Melnyk’s work. His recent research has focused on how Millennials are reshaping the global supply chain, the potential of blockchain technology to protect supply chains against cyber attacks and the development of sustainable supply chain operations.

“I like being at the leading edge; I like the challenges and being at the leading edge is full of challenges.”

Melnyk spoke with us about his transition from economics to supply chain management, the threats facing the world’s supply chains, the “mantra of critical thinking” and success factors for students in the MS in Supply Chain Management program.

Q. Can you tell us about your background and how you developed an interest in supply chain and operations management?

I began wanting to become an economist. Consequently, I have an MA in Economics from the University of Western Ontario. It was as I was getting ready to begin my research in economics that I understood the truism often stated about economists: they are people who know the price of all things but the value of none. I then switched to business. While at the business school at Western Ontario, I decided to focus on getting a doctorate in operations management.

When I graduated, I found that there were few jobs in operations management in Canada but a lot in the United States. After interviewing at several schools, I decided to take the job offer at Michigan State University. At the time, a major consideration was its location – it was only five hours from Toronto and my in-laws (a critical issue since my wife was close to her parents). It was only by a quirk that I wound up at the home of supply chain management.

When I got to MSU, it was at the start of the supply chain management movement. There had been a decision among the operations, purchasing (located in management) and logistics people to launch a new integrated approach – material and logistics management.

When I entered the department in August 1980, I was part of the first year that this program was offered. Little did I know that it was to be the predecessor of supply chain management.  When I arrived at MSU, I had a chance to know people like Don Bowersox, Phillip Carter, John Hoagland, Dick Gonzalez, and Bob Monczka. These were the leaders and founders of supply chain management; they were true visionaries.

I initially focused on operations management. Under the guidance of people like Phil Carter and Dick Gonzalez, I was encouraged to find my research voice. I found that I liked to focus on research that was at the intersection of theory and practice. I also found that I liked to do research involving emerging issues – that focus has characterized my entire academic career. As a result, I have become somewhat unique in our field: a person who jumps from topic to topic.

Over time, I have moved from operations management to supply chain management. This transition reflects the changes taking place in the industry. As a result, I can truthfully say what a great ride it has been.

Q. Your areas of research include supply chain risk and resilience. What are the looming threats facing the global supply chain? What are some of the measures being taken globally to enhance resilience?

My movement to supply chain risk and resilience occurred directly as a result of George Zsidisin, who was previously at MSU. He was and continues to be a visionary in this field. Over time, I have found myself still trying to get a sense of this topic. I continue to do research in this field.

Currently, there is a tendency to broaden the scope of risk and resilience. We are starting to see new dimensions in risk and resilience emerge, specifically:

• Sustainability – Organizations are starting to recognize that they are responsible for their supply chains. Failure to do so can, and will, bring their supply chains down. Consider the following. In June 2016, an article appears in the Manchester Guardian focusing on car paint and BMW, VW and Vauxhall. All three car companies have strong statements in their purchasing documents regarding the importance of sustainability. The article describes how all three companies use mica to add glimmer to their paint. This paint is sourced from a supplier in China. This supplier, in turn, has sourced its mica from four suppliers in India. All four suppliers, it turns out, are mining this mineral using child labor and economic slave labor. In all four cases, there was no protection offered to the labor. This meant the workers were exposed to the dangers of mica, a silicon mineral that when inhaled can eventually kill the person by restricting their ability to breathe. As a result, all three car companies were forced to re-source their supply chain. Sustainability is no longer a wish; it is a reality and a source of risk.
• Complexity – When you ask a supply chain manager about complexity, you typically hear that it is something that they want to avoid incurring – it adds cost, it increases lead time, it makes life more difficult. Yet, we are starting to see that complexity is something that the market wants and, as a result, it is something that we must provide.  However, we have to make the customer aware of the true and often-hidden costs associated with complexity.
• Cybersecurity – This is the issue of greatest concern to me now. As a result of recent developments such as the Internet of Things (IoT), Industry 4.0, 3D printing, Big Data, and analytics, we are now faced with the digital or cyber supply chain. We are coming to realize that this is an environment where innovation, responsiveness, and security are critical. Finally, we are starting to realize that cybersecurity focuses on three issues:

• • Protection of intellectual property
  • Prevention of distortion in information technology
  • Protection of operating assets (i.e. preventing denial of processes)

In this environment, firms are becoming aware that these break-ins often come from the supply chain (specifically from our upstream system) and that these break-ins can be devasting strategically and financially.

Q. As part of the blended MS in Supply Chain Management program, you teach the Total Quality Management and Lean Enterprise course. Can you tell us about the course curriculum and the lessons students can apply in their professional endeavors?

SCM 874 Total Quality Management (TQM) and Lean Enterprise are what most students describe as one of the hardest but most transformative courses offered by MSU. What makes the MSU MS in Supply Chain Management so unique is encompassed in this course. The focus is on effective decision making/problem solving and, more importantly, critical thinking. Why the shift to critical thinking? Because that is a skill that managers and companies demand in their strategic supply chain managers and I want this program to deliver it. By the end of the course, students know by heart the mantra of critical thinking:

• Never attack symptoms – understand why they exist
• The power of the Japanese adage of “Wait-Wait-Wait-Fast-Fast-Fast”
• The need to manage with data
• Understand the tools found in Lean and TQM and know when to use them and when not to use them
• Strategic supply chain management starts and ends with the key customer
• Use the data to tell a story so that management can understand how they got into the current situation
• Always ensure that you are attacking the “right” problem
• Decision making is not the same as problem-solving
• Waste, inventory, quality, measures – these are prime examples of symptoms
• Never confuse vitality with urgency
• Always understand the limitations of every concept and tool; Lean is not the universal answer
• Mastering the management paradox – managing for stability in the short-term; planning for change in the long-term
• The need for fast management in today’s dynamic environment

Q. You are the author of dozens of books and articles and a member of numerous editorial review boards. How important are written communication skills for supply chain professionals?

Critical, especially in today’s fast-paced environment. Our effectiveness as managers depends on our ability to communicate. Effective communication occurs when the message received by the listener or the reader is the same as the message sent out by the sender. One of the findings that we have learned from our talks with managers is the emphasis they place on communication, both written and verbal. Consequently, every submission in the SCM 874 course is a management report; every grading rubric includes 10% for communication. Our MS programs can be described as an education that works for those who work.

Q. You recently published research focusing on the role of Millennials in shaping the “experiential supply chain.” Can you tell us more about your findings?

The supply chain is changing – a reflection of changes now taking place in both the technology and the consumer base. With Millennials now replacing Baby Boomers as the major consumer segment, we are seeing a change in what is being demanded. This is a generation that wants more than price and availability; they want speed and convenience, and they want to be involved in the co-creation of the product. For these consumers, there is the experiential supply chain.

This is a supply chain that involves the customer in the creation of the good and service. It sells the experience. It is what we see in Starbucks Reserve, in MTailor, in Hello Fresh and Plated, and in the rise of Airbnb. The experiential supply chain represents the newest type of supply chain. It shows the growing emergence of supply chains as a visible and critical element in corporate strategy. It also illustrates the new demands now being placed on the supply chain – greater social responsibility, greater visibility, and greater customization.

With the experiential supply chain, we see the walls disappearing between the customer and the supply chain. It is the shape of things to come.

Q. You’re approaching your 40^th anniversary as a member of the MSU faculty. How has the art and science of teaching evolved over the decades? What aspect of your work gives you the greatest satisfaction?

In the past, education was spoken; today, it involves YouTube videos and articles. Students demand that they learn something useful every time that they come. That is a challenge.

What aspect gives me the greatest satisfaction? The realization that my research is now being recognized for what it is. I have followed a very unusual approach to research. Most researchers tend to pick an area and then focus on it for a long period of time. My approach has been to identify and study new developments. These types of developments tend to be poorly structured and poorly understood. My approach is to study it, provide structure and then identify what areas need more research. That is what I am doing in my current research on supply chain cybersecurity. What I have found is that my articles have been read and cited extensively – that is greatly satisfying.

Q. What do you consider to be the key factors for student success in the MS in Supply Chain Management program?

Simple: curiosity, drive, patience (wait to understand why things are done as they are), intelligence, discipline, flexibility (ability to rethink your approach after being given feedback) and demanding.

Q. What is one fun fact about you?

Aside from collecting fountain pens (over 500), watches (don’t ask) and photography (ask me about my Leicas), I am a clawhammer banjo player (I am now working on Charlie Poole’s “You Ain’t Talking to Me” and the “White House Blues”).

Check out our Faculty Spotlights to learn more about Michigan State University’s fascinating faculty members.