Spotlight on Distributors / Wholesalers Supply Chain Talent Report. September 2013
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1 Spotlight on Distributors / Wholesalers Supply Chain Talent Report September
2 Supply Chain Talent Report: Distributors / Wholesalers Table of Contents Page Introduction 3 Demographics 4 Organization-Wide Events 7 Turnover by Function 8 Expected Turnover by Function 9 Talent Evaluation: PLAN 10 Talent Evaluation: BUY 11 Talent Evaluation: MAKE 12 Talent Evaluation: MOVE (International) 13 Talent Evaluation: MOVE (Domestic) 14 Talent Evaluation: STORE 15 Critical Shortage by Geography 16 Supply Chain Hiring Practices 17 Report Authors 19 2
3 Introduction The Spotlight on Distributors / Wholesalers Report is part of a series of breakout reports from Tompkins Supply Chain Consortium s July 2013 Supply Chain Talent Report. The information presented is based on supply chain talent data from 24 distributor / wholesaler respondents. Click here to read the full Supply Chain Talent Report. Additional supply chain talent industry breakout reports include third-party logistics providers (3PLs), retail, industrial manufacturing, and consumer packaged goods. 3
4 Demographics Company Size 26.1% 13.0% 4.3% >$25 billion annual revenue Between $10 billion and $25 billion annual revenue 30.4% 26.1% Between $1 billion and $10 billion annual revenue Between $250 million and $1 billion annual revenue <$250 million annual revenue 4
5 Demographics Q2 Primary Industry 8.3% 4.2% 4.2% 20.8% 20.8% 4.2% 4.2% 12.5% 20.8% Apparel/textile Automotive/parts Building products Consumer products Distributors Food & kindred product Furniture Pharmaceutical/medical Technology/electronics 5
6 Demographics 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 16.7% Current Position 37.5% 37.5% 8.3% 0.0% C-Level Vice President Director Manager Supervisor / Analyst C-Level Vice President Director Manager Distributors of apparel, food and beverage, and other consumer products make up more than 60% of this category. The target audience is reached, with nearly 92% of respondents at the director level or higher within his or her company. 6
7 Organization-Wide Events Organization-Wide Events in the Past 18 Months Voluntary Job Elimination 13.3% Layoffs 46.7% Organizational re-structure 73.3% Hiring freeze for open positions 46.7% Moratorium on new positions 40.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% The effects of the Great Recession are still being felt in a majority of supply chain organizations. Distributor and wholesaler supply chains have had comparatively fewer organization-wide events in the past 18 months. Nearly 40% of category respondents have not experienced any of the events listed. Those that have experienced organization-wide events endured an average of two events each. 7
8 Turnover by Function Turnover in the Past 18 Months Planning 31.8% 13.6% 36.4% 4.5% 13.6% Procurement 33.3% 23.8% 28.6% 4.8% Manufacturing 18.2% 27.3% 45.5% 9.1% Int l Transportation 21.4% 14.3% 50.0% 7.1% 7.1% Domestic Transportation 28.6% 52.4% Distribution 25.0% 25.0% 20.8% 16.7% 12.5% 0% 20% 40% 60% 80% 100% 1 - Substantially Less than Normal Typical Substantially Higher than Normal Distributor / wholesaler respondents are about twice as likely to say they have experienced substantially higher turnover than the general survey population. This was particularly evident in distribution and planning. 8
9 Expected Turnover by Function Expected Turnover in the Next 18 Months Planning 5.6% 66.7% 27.8% Procurement 5.3% 78.9% 15.8% Manufacturing 8.3% 75.0% 16.7% Int l Transportation 14.3% 64.3% 21.4% Domestic Transportation 15.8% 57.9% 26.3% Distribution 10.5% 63.2% 26.3% 0% 20% 40% 60% 80% 100% Expect Lower Turnover About Normal Expect Higher Turnover Distributors are expecting higher turnover in supply chain personnel than any other industry segment. 9
10 Talent Evaluation: PLAN Planning Personnel Headcount 55.0% 35.0% 10.0% Relevant Experience 35.0% 45.0% 20.0% Education & Training 35.0% 55.0% 10.0% 0% 20% 40% 60% 80% 100% About right More is needed Critically Short In line with other industries, distributors and wholesalers are most likely to rate planning as the area of greatest need, although reasons for the critical shortage and areas of need vary for each participant. 10
11 Talent Evaluation: BUY Procurement Personnel Headcount 68.4% 31.6% Relevant Experience 52.6% 47.4% Education & Training 52.6% 47.4% 0% 20% 40% 60% 80% 100% About right More is needed Critically Short Not surprisingly, purchasing is not an area of concern for wholesalers and distributors. 11
12 Talent Evaluation: MAKE Manufacturing Personnel Headcount 86.7% 13.3% Relevant Experience 80.0% 20.0% Education & Training 80.0% 20.0% 0% 20% 40% 60% 80% 100% About right More is needed Critically Short Manufacturing is also not an area of concern. 12
13 Talent Evaluation: MOVE (International) International Transportation Personnel Headcount 64.3% 35.7% Relevant Experience 64.3% 21.4% 14.3% Education & Training 64.3% 21.4% 14.3% 0% 20% 40% 60% 80% 100% About right More is needed Critically Short Distributors and wholesalers are the most likely to identify international transportation as an area of critical need. 13
14 Talent Evaluation: MOVE (Domestic) Domestic Transportation Personnel Headcount 63.2% 21.1% 15.8% Relevant Experience 61.1% 27.8% 11.1% Education & Training 55.6% 33.3% 11.1% 0% 20% 40% 60% 80% 100% About right More is needed Critically Short Distributors are the industry with the second highest concern (after retailers) about domestic transportation personnel. However, the issue is more likely about an absolute headcount shortage than a lack of a particular skill. 14
15 Talent Evaluation: STORE Distribution Personnel Headcount 75.0% 20.0% 5.0% Relevant Experience 70.0% 25.0% 5.0% Education & Training 65.0% 30.0% 5.0% 0% 20% 40% 60% 80% 100% About right More is needed Critically Short Comparatively, few wholesalers consider themselves in poor shape with distribution personnel. 15
16 Critical Shortage by Geography 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% U.S. Geographic Areas in Which It Is More Difficult to Find Qualified Supply Chain Personnel 0.0% 36.4% 27.3% 0.0% 36.4% US - Northeast US - Southeast US - Midwest US - Southwest US - West Wholesalers and distributors share their need for more/better personnel on the West Coast with almost all other categories. However, the group s needs in the Southeast are unique to the category. 16
17 Supply Chain Hiring Practices Change From 2 Years Ago Undergraduate Hiring 10.0% 75.0% 10.0% 5.0% Graduate Hiring 4.8% 57.1% 19.0% Hiring from Competitors 76.2% 4.8% Hiring from Vendors/Suppliers 14.3% 71.4% 4.8% Hiring from Customers 14.3% 66.7% Hiring from LSPs 66.7% 14.3% Hiring from an Unrelated Industry 4.8% 14.3% 57.1% 23.8% 4.8% 23.8% New Hires with Recog. Certifications 0% 20% 40% 60% 80% 100% Distributor / wholesaler hiring practices align with overall survey population in all categories. 57.1% 1 - Substantially Less About the same Significantly More 14.3% 17
18 Supply Chain Hiring Practices Percentage of Most Successful Supply Chain Employees Undergraduate programs 45.6% 22.9% 24.1% 7.4% Graduate degree programs Internal candidate making a cross-functional move External candidate from another company The best supply chain employees are less likely to be an internal candidate for this category and more likely to be brought in from another company or hired as an undergraduate. 18
19 SUPPLY CHAIN EXCELLENCE SUPPLY CHAIN EXCELLENCE Report Authors To learn more about supply chain talent, as well as benchmarking and best practices, additional resources are available to members through the Supply Chain Consortium: Qualified companies may join the Supply Chain Consortium s LinkedIn or Xing Group: Bruce Tompkins Executive Director Chris Ferrell Director 6870 Perry Creek Road Raleigh, NC (919) Office (919) Mobile 6435 Hazeltine National Drive Suite 105 Orlando, FL (407) Office (919) Mobile btompkins@tompkinsinc.com cferrell@tompkinsinc.com 19
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