Supply Chain Talent Development Logistic Summit & Expo México Abe Eshkenazi, CSCP, CPA, CAE 1
Growing Awareness of Supply Chain and Operations Management The profile of supply chain and operations management professionals is rising. Major news organizations discuss, e.g., Supply chain disruptions (2011 tsunami) Bill of materials (Apple products) Ethical supply chains (manufacturing work conditions) Some confusion: UPS We love logistics campaign 2
Corner Office: (SCM) Strategy Executive teams realize that supply chain excellence is a competitive advantage. Traditionally, the advantage was cost reduction: Operate lean and efficiently Reduce waste Reduce inventory Strategic use of capacity and assets Low cost labor Focus now is on value creation for the entire supply chain 3
New and Growing SCM Challenges Supply chain risk Supplier disruptions Availability of capital; recessions Globalization-related Emerging markets as suppliers and customers McKinsey projects that 1.8 billion people will join the global consuming class by 2025 expanding demand for products produced across the globe. 4
New and Growing SCM Challenges Sustainability People, planet, and profit Satisfy customer expectations Government regulations Moving from board room to shop floor Lack of consensus on definition and measurement of sustainability 5
Manufacturing Still Matters the new era of manufacturing will be marked by highly agile, networked enterprise that uses information and analytics as skillfully as they employ talent and machinery to deliver product and service to diverse global markets. In advanced economies, manufacturing will continue to drive innovation, exports, and productivity growth. In developing economies manufacturing will continue to provide a pathway to higher living standards. Manufacturing the future: The next era of global growth and innovation, McKinsey 2012 6
Manufacturing Still Matters the new era of manufacturing will be marked by highly agile, networked enterprise that uses information and analytics as skillfully as they employ talent and machinery to deliver product and service to diverse global markets. In advanced economies, manufacturing will continue to drive innovation, exports, and productivity growth. In developing economies manufacturing will continue to provide a pathway to higher living standards. 7
Manufacturing Still Matters the new era of manufacturing will be marked by highly agile, networked enterprise that uses information and analytics as skillfully as they employ talent and machinery to deliver product and service to diverse global markets. In advanced economies, manufacturing will continue to drive innovation, exports, and productivity growth. In developing economies manufacturing will continue to provide a pathway to higher living standards. 8
Manufacturing Still Matters the new era of manufacturing will be marked by highly agile, networked enterprise that uses information and analytics as skillfully as they employ talent and machinery to deliver product and service to diverse global markets. In advanced economies, manufacturing will continue to drive innovation, exports, and productivity growth. In developing economies manufacturing will continue to provide a pathway to higher living standards. 9
Manufacturing Still Matters the new era of manufacturing will be marked by highly agile, networked enterprise that uses information and analytics as skillfully as they employ talent and machinery to deliver product and service to diverse global markets. In advanced economies, manufacturing will continue to drive innovation, exports, and productivity growth. In developing economies manufacturing will continue to provide a pathway to higher living standards. 10
Talent Management is More of a problem at entry level 7.4% More of a problem at senior leadership 17.4% Similar across all levels 36.2% More of a problem at mid level 39.0% 0.0% 20.0% 40.0% 60.0% CSCO Report 2011, SCM World 11
Big Gaps in Problem Solving, Real-World Experience Problem Solving Ability to Work in Teams 41% 54% 55% 64% Talent and High-Performing Supply Chains, Gartner 2011 Broad Understanding of Supply Chain Concepts 52% 53% Analytics 43% 55% Real-World Experience Ability to Integrate Information Balancing IT and Business Skills 16% 17% 15% 26% 27% 31% Global Business Leadership Skills 5% 15% Supply Chain Technology Risk Management Virtual or Matrixed Team Management N = 356 8% 4% 8% 7% 14% 24% Should Have Actual Strengths 12
Biggest challenges in SC Talent Acquisition Lack of budget to hire needed positions Perceived lack of career path or future Poor leadership, soft skills, or others difficult to develop Slow/complex internal hiring processes Lack of available skilled or experienced talent 35.0% 34.0% 35.0% 32.0% 53.0% 0.0% 20.0% 40.0% 60.0% APICS Research May 2012 13
Biggest challenges in SC Talent Development Demographic shifts causing loss of 12% Developing talent globally 28% Meeting compensation and 36% Lack of recognition of SC training 61% Best staff leaving for other 32% Insufficient training for technology 43% 0% 20% 40% 60% 80% APICS Research May 2012 14
Challenges in respect of knowledge workers CSCO Report 2012, SCM World 15
Oct. 2010 Roundtable MIT Center for Transportation and Logistics many participants sought what they deemed a super-human combination of people who have technical depth, business breadth, and the soft skills to be a leader, influencer, and diplomat. Modern supply chains call for deep subject matter expertise, an integrated understanding of broader business imperatives, and the ability to lead coworkers while operating across countries and cultures. 16
How Will You Be Prepared? Talent development through the university and association. University training Build foundational knowledge and experience Professional association Guidance and direction Validate knowledge Build connections 17
Role of the University Provide broad overview of end-to-end supply chain Operations management (OPS) program Hands-on experience Capstone consulting project Internships 18
Role of the Company Engage HR in discussion Provide rotational experience opportunities Develop clear career milestones Identify mentors Commit to professional development 19
ROE Return on Education The Shadow Value of Employer-Provided Training Employer-provided training exerts a positive and significant effect on job satisfaction. On average, this effect is equivalent to a 17.7% increase in labour earnings. Santiago Budría* University of Madeira and CEEAplA Pablo Swedberg - Department of Business and Social Sciences, St. Louis University, December 2010 20
Role of the Association: Career Paths Provide career guidance What roles exist Education requirements Competencies (hard and soft skills) Provide a forum for information exchange Unbiased research 21
APICS Career Packs APICS Career Pack provides practitioners, hiring managers and human resource professionals with the information they need to understand: the skills, knowledge and experience professionals in this position must possess; typical career paths; responsibilities of the position. Positions include: Supply chain manager Materials manager Buyer/planner Master scheduling manager Distribution and logistics managers 22
Operations Management Body of Knowledge (OMBOK) Framework Expanded Content Sustainability United Nations Global Compact 10 principles Corporate social responsibility Reverse logistics Risk Risk management framework Risk mapping 23
Role of the Association: Build Connections Chapter membership and annual conferences provide opportunities to: network be mentored participate in case competitions attend plant tours and job fairs 24
Role of the Association: Post-graduation Certifications Certified in Production and Inventory Management (CPIM) Certified Supply Chain Professional (CSCP) 25
Rewards Dynamic role Consideration for special projects Certified professionals: Recognition Qualified for more job roles Compensation CPIM on average earn 17 percent more than non-certified CSCP on average earn 9 percent more than non-certified 26
Thank you. 27