Who Will Make Up the Next Generation of Logistics?

Transcription

1 2014 Annual Logistics Conference Who Will Make Up the Next Generation of Logistics? Joel Sutherland Managing Director Supply Chain Management Institute University of San Diego Tim Fischer Senior Vice President Supply Chain Bumble Bee Foods San Diego, CA

2 USD & SCMI SCMI founded in 1999 Offering supply chain management education since 1986 Committed to develop and disseminate logistics/scm knowledge & best practices in three areas: Collaborative Relationships World-Class Education Applied Research Board of 25 companies provides support and guidance

3 Evolution of Logistics Fragmented 1960 s Increased Integration 1970 s 1990 s Today

4 Boardroom Expectations of SCM Reduce Costs Profit Contribution Less Inventory Sustainability Better Use of Capital

5 Where Will Our Future Leaders Come From? By 2015 at least 40% of new CEOs at Fortune Global 500 manufacturers and retailers will have supply chain experience. Source: Gartner (2012)

6 The Every 8 seconds one of the baby boomers turns 65 (>7,000 per day). Some have postponed retirement but many retire with fewer talented people to replace them new generation 11% less. Raytheon HR executive: 60% of our workforce is ready to retire in the next 5 years. We really need to step back and grow our talent % of top talent in the U.S. is going into a sector (e.g. finance, consulting) that is not contributing to economic productivity (e.g. supply chain). Universities and industry need to work together to identify the right skills needed to address these challenges.

7 The only thing that interferes with my learning is my education. Albert Einstein University recruits may be book smart but lack the necessary real-world experience to...

8 Aligning Curriculum to Demand A university is like a manufacturing company neither can afford to produce a product that has little or no demand in the marketplace. Source: Joel Sutherland Key questions Where do companies find their supply chain talent? Does this talent match the firms needs? What are universities doing to produce the right talent?

9 Next Generation of Logistics? USD/SCMI conducted details surveys and interviews with more than 100 supply chain executives from a broad industry base asking them When hiring new supply chain talent, in what topics or skills do you want them to be proficient? Source: USD Industry Survey 2012

10 What did Industry Tell Us? Undergraduate SC curricula should be broad, end-to-end, and include global issues. No deep dive into one particular area - specialize at graduate-level. Talent should be able to grasp big picture, understand how all the pieces fit together. Internships provide real-world experience the more internships the better! Talent needs to know how a company makes a profit! Talent should possess core Building Block skills. Source: USD Industry Survey 2012

11 Essential Skills for SCM Career Success Key Building Blocks Project Management Proactive Drive Drive the plan forward create plan, assess critical path, align the troops see what is needed and take action without reservation Good at execution Persuasion Collaboration Gain buy in for solution communicate ideas clearly, succinctly, with confidence influence across functions, cultures and personality types Good with people Business & SCM Acumen Analytic Problem Solving Identify right solution see bottom line impact & how SCM pieces fit end-to-end can mine data & make critical recommendations Good with information Source: USD Industry Survey 2012

12 What Should Universities Do? Pursue learning opportunities for undergrad and graduate-level students through internships. Develop close relationships with industry in order to understand current and evolving needs. Establish end-to-end curricula. Get deans, department heads, program directors and professors engaged and supportive. Encourage and support student involvement in professional associations (ISM, CSCMP, APICS, WERC).

13 What Should Industry Do? Actively recruit students for internships. Engage in various programs such as career fairs, educational conferences at universities, networking events, and tours. Provide curriculum advice that aligns with industry s needs. Engage faculty to pursue innovative supply chain ideas. Be a resource to provide understanding of industry needs/trends. Establish a clear career path for SC talent. Attract, develop and retain

14 Takeaways / Lessons-Learned 1. No two supply chains are the same 2. Industry values core skills over specific supply chain skills 3. Real-world experience matters 4. Globalization is becoming increasingly important 5. Industry-University relationships are important 6. There is a supply chain talent crisis

15 Bumble Bee Foods - Overview Bumble Bee is one of North America s bestknown consumer packaged goods companies, with leadership positions in virtually every segment of the U.S. and Canadian shelf-stable seafood market Produces and markets shelf-stable tuna, salmon, sardines, clams and other specialty seafood products under the Bumble Bee, Clover Leaf, Brunswick, Snow's and Beach Cliff brands #1 U.S. and Canadian total shelf-stable seafood #1 U.S. albacore tuna, canned salmon, sockeye salmon, sardines and clams #2 U.S. overall tuna and pink salmon #1 Canadian albacore tuna, lightmeat tuna, salmon, sardines and other specialty seafood segments Processes ~60% of the Company s shelf-stable seafood requirements FYE December 2011 revenue of $1 billion

16 Bumble Bee Foods - Overview Leading portfolio of well-recognized brands, with an opportunity to extend into non shelf-stable products Leader in U.S. shelf-stable seafood category #1 albacore tuna and #2 overall tuna brand Leading positions in salmon and specialty seafood #1 brand of sardines in Canada and #2 brand of value-priced sardines in the U.S. Leader in overall shelf-stable seafood category in Canada #1 shelf-stable tuna and #1 or #2 in almost every other major shelf-stable seafood segment #1 brand of chopped and minced clams and clam juice #1 brand of premium quality sardines, kipper snacks and anchovies #1 brand of value-priced sardines in the U.S. #1 brand of canned chicken & dumplings, pouch chicken, and player in canned chunk chicken and chicken broth products Nearly 90% consumer awareness levels for Bumble Bee and Clover Leaf in the U.S. and Canada, respectively

17 Bumble Bee Foods - Overview Best in class supply chain Low cost operator with sustainable cost advantage versus competitors Company maintains highly flexible supply chain, which combines Company-owned and leased manufacturing facilities with third party co-packers Process ~60% of own shelf-stable seafood requirements Only company to have direct access to raw materials in each of the major oceans Flexibility to take advantage of higher catches and lower prices in any of the world s significant tuna fishing regions Importantly, all of the Company s major fishery resources are being sustainably managed Facilities strategically located adjacent to supply sources to enable direct access to fish, reduced labor costs and preferential duty status Blacks Harbour, NB Santa Fe Springs, CA Cape May, NJ Puerto Rico Trinidad Thailand Fiji Mauritius Bumble Bee owned/contracted locations Co-packers locations Unique supply chain configuration provides Bumble Bee with a significant competitive advantage

18 Bumble Bee Expectations A talent pool that understands what end-to-end supply chain means People who understand the world issues and how they affect a global supply chain People who are committed to personal growth Students who understand the importance of strong foundation of knowledge and experience Academia that collaborates with industry Avenues of education outside standard universities

19 What Makes Up The Bumble Bee Supply Chain? Procurement Purchasing Manufacturing Finance IT Global Planning Transportation Customer Service Logistics Inventory HR Project Management These are the elements of an end-to-end supply chain!!!!

20 Challenges San Diego presents a difficult job market Not a heavy industrialized area Smaller job pool for companies to draw from Many specialized areas of the supply chain Most students take classes in some relevant areas but not all The students do not see the chain and how it all ties together Many schools do not offer classes in key areas Lack of work experience Companies often want both education and work experience Jobs that a student can obtain while going to school are often not related to supply chain Globalization Supply chain students must have knowledge beyond the borders of the U.S.

21 Challenges Supply chain as a career Term Supply Chain is new. Do students know what it is? Do students understand what is involved? Has industry sold the concept of supply chain? Opportunities With some many aspects to Supply Chain there are more opportunities How does a person get into this field? How do they advance? What is the starting pay and benefits? Do companies take people right out of school? Availability of supply chain curriculum What schools offer end to end supply chain education?

22 Challenges Lack of comprehensive collaboration between industry and academia What companies support supply chain programs at the university level? Are companies a part of students education? Are jobs waiting at certain companies? Flexibility of movement from one company to another How much of a commitment is a student willing to make to a company and a school?

23 Managing the Challenges Industry Companies understand the importance of supply chain excellence Define supply chain excellence Identify short/long term goals in supply chain Outline the skill set needed to meet these goals Be involved in organizations that support supply chain education (i.e. CSCMP Global and RT) Sell supply chain as a career through career fairs, involvement in organizations, etc Create clear career paths for new hires that reduce overall attrition

24 Managing the Challenges Academia Collaborate with industry. Understand what makes up a supply chain Build curriculum that reflects industry supply chain. Build skill sets that match industry need Be involved in organizations that support supply chain education (i.e. CSCMP Global and RT)

25 Managing the Challenges Students Be flexible. Be willing to abandon traditional forms of curriculum and work to widen your knowledge base. Look to interact with people in industry whenever possible Organizations Internships Career days Industry literature Be willing to travel Have a clear vision of what you want

26 Bumble Bee Experience Internships Industry Organizations Research and analysis Employee education Collaboration with universities

27 Current State Excellent Programs at various universities More programs that focus on end-to-end supply chain are needed Economy has changed the work dynamic Many industry organizations available to support and supplement academia More companies see the importance of the execution side of the business The industry is changing rapidly through technology. Not enough opportunities to work in supply chain and go to school

28 Final Thoughts Industry/Academia/Students must collaborate to develop supply chain professionals. Supply Chain will be an area of substantial growth and development in the next few years as companies look to have faster data exchange and faster product movement. Supply Chain is always charged with reducing costs. Success is limited in the current model. All participants in the supply chain starting with raw material all the way to the consumer must begin to collaborate to find cost reductions. The need for talented and knowledgeable people grows everyday. These people will fuel the continued improvement in Supply Chain as we move to Data and analytics will be key areas of focus in the supply chain. (Big Data). Social media and other areas of data collection will grow in importance

29 Questions?