Carmel Perales General Manager Southeast Asia Logistics Executive Group

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1 Carmel Perales General Manager Southeast Asia Logistics Executive Group 2015 PASIAWorld Annual Conference 2020 Vision: Competitive Procurement, Logistics and Supply Chain

2 PEOPLE MATTER The Importance of Executive Leadership in Logistics and Supply Chain Why People Matter. Creating Results. A presentation by: Carmel Perales l General Manager Southeast Asia

3 Dynamic Shift changing logistics landscapes forever The Asian Era Omni Channel /E-Commerce Changing Inventory Strategies Introduction of Dynamic Manufacturing & FTA s Changes in wealth distribution increasing the importance of Emerging Markets

4 Future Prospects but Differing Business Model 17,000,000 new employees needed in Transport & Logistics (10 years). By 2030, 23% of the World s Population will be in the USA, Australia and Europe 2/3 of middle class spending by 2030 will come from Asia Global Trade to rise threefold by 2030 By 2025, 500 million households in Asia will connect to electricity for the first time driving consumer product growth Source: PWC, Transport & Logistics 2030 Report/Eco Supply Chains

5 Growth in a Changing Environment is Fragile Depends on the ability to remain globally competitive Innovate ahead of customer demand Increasing Business Productivity e.g. - Up-skilling labour force - Improving Leadership - Creating a larger pool of talent through Education & Training Sustainability of all elements

6 01 Think Smarter and Act With Purpose We need to develop Globalized Leadership Talent in a supply chain world without borders Closer collaboration with customers better visibility / forecasting Improved SC development to ensure our logistics operations are ahead of the curve in aligning capacity and capability with demand Market Creators not Market Followers opening opportunities with innovation and solutions leadership

7 36% of employers Globally report talent shortages in 2014 The highest percentage in 7 years.

8 Our purpose may be moving goods however People Are The Enablers Reduced Ability To Serve Client Reduced Competitiveness/ Productivity Increased Employee Turnover Reduced Innovation and Creativity Higher Compensation Costs Lower Employee Engagement/ Morale 0% 10% 20% 30% 40% 50% 60% The issue of most concern for employers is how talent shortages undermine their ability to serve clients, followed by reduced productivity and competitiveness

9 Today s Logistics Leadership Challenge is simple As the Logistics and Supply Chain market shift, companies need new ways to manage their customers value proposition, strategies, costs and their people or risk being redundant in a world that is changing.

10 Time to act. Excuses were yesterday No time to invest in internships

11 No Silver Bullet can fix the challenge Faced Define Company Culture, Employer Brand & Identity 47% of companies are addressing talent shortages are adopting new people practices Keep Training & Development Fluid Build An Agile Human Resources Architecture 23% of respondents are searching for new talent sources, typically by recruiting from untapped or under-tapped talent pools Increase Workplace Diversity and Talent Pipelines Develop Leadership 25% of respondents with talent shortages are preparing to adopt new, alternative work models

12 Prioritize and develop a Leadership Pipeline with a focus on results and employ nurturers who will share knowledge

13 Actively encourage future leaders Building global champions extending their functional responsibilities to gain broader experience

14 Knowledge can empower a workforce Invest in global training programs, higher education and manage careers carefully

15 Attracting, recruiting and retaining individual leadership talent is imperative for success, so make this a key agenda item.

16 Get smart with your compensation and benefits offering Be market competitive Reward for professional growth and performance Creative approach to compete with nationalized sectors Introduce non-financial incentives

17 Attracting a diversity of talent and managing their future skills development is critical to right shaping your leadership team

18 Engage early and Engage often for tomorrows future leaders Understand the generation target what ticks Early and consistent engagement is critical Adopt technology get savvy Creative brand energy Inspire promote the potential advancement

19 Commitment and Vision will win the talent battle Lead in diversity Attract younger talent Encourage elders to stay Invest in your future stars Educate for the future Blend with international talent Energize the graduates

20 The Leadership Roadmap Diversity Management Employer Branding Career Path Management Education & Training Recruitment Practices & Retention Compensation & Incentives Workforce Planning

21 Logistics Executive Group Suite 32,3 Church Street #25-00 Samsung Hub Singapore Carmel Perales l General Manager, Southeast Asia CarmelP@LogisticsExecutive.com Logistics Executive has studied workplace behavior and team dynamics in the Supply Chain and Logistics industry cross-culturally. For 16 years we have assisted multinational companies to develop people strategies, led talent attraction programs, defined and implemented business processes and provided expert consulting that has impacted organizations with positive business outcomes. Melbourne Sydney Perth Singapore Hong Kong Shanghai Mumbai Delhi Chennai Dubai Ireland London

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