Post on 26-Jan-2017
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Mark B. TaylorCMgr, FCMI, FCILT, FSCM
ChairmanDefence Procurement Summit
2016©Taylor Consulting Group
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?
Simply the Best
"Building effective, efficient procurement talent"
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SynopsisWhy must defence procurement and logistics supply chain directors, think more strategically about talent
management?
Because best-in-defence execution depends on best-in-defence people. It doesn’t matter how much you invest in logistic SCM, technology or processes - if you don’t also
invest in people, you won’t succeed. ©Taylor Consulting Group
Scope
Why is there a shortage of logistics, procurement & supply chain talent?
Solving the “talent crisis”The alternatives?Technology versus employee capacity - complex Log
IS = increase in the required employee skill level
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So what?
Why?TechnologyIncreasing demandExpanding demographic voidRapidly evolving “skillset” requirementsPotential shortfalls in academiaNegative bias towards the logistics “image”
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The perfect storm?
Source: Mehta, A. (2015)
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Technology versus employee capacity
Legacy employeesEvolution of Log ISThe cost of human errorCPD?
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Increasing demand
Increased complexity of supply chainsDemand for supply chain professionals exceeds
supply by a ratio of 6 to 1The future could see a ratio of 9 to 1Graduate versus vocation
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Expanding demographic void
An aging workforceEurope and America face the same talent “exodus”Retirement versus replacementMiddle management shortageFallout from the 2008 financial crisis
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The talent gap
29%
61%
10%
Source: Supply Chain Insights LLC, 2014.
Entry Level
Middle Management Level
Executive Level
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Expanding demographic void
An aging workforceEurope and America face the same talent “exodus”Retirement versus replacementMiddle management shortageFallout from the 2008 financial crisis
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Rapidly evolving “skillset” requirements
Supply chain managers – growth of roleCompetenciesBroader qualifications requiredMultiple skillsetsA developing environment
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Potential shortfalls in academia
The capacity of academia to create new talent60% of new logistics roles require skills that only 20%
possessOnly 1.3% of all business studies are dedicated to SCM,
logistics & transportation First find then train talentUniversity placements in industry
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Negative bias toward the logistics “image”
Lack of understandingNot a “career path”Inadequate educational programsAttracting the “young”Change sensitive
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Solving the talent crisisLiaison with the logistics industry“In house” formulisation of knowledge transferEducation by employerEmployee role-rotation mentorship programsBecome an “employer of choice”
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Liaison with the logistics industry
Must be proactiveCollaborationA learning platformAcademic programs must understand the industry
requirements
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Industry based supply chain education program
Continuous improvement
Logistic risk management & analysis
Supply chain strategy
Sourcing & procurement
Supply chain concepts
Business environment
Sustainability & corporate responsibility Logi
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Liaison with the logistics industry
Must be proactiveCollaborationA learning platformAcademic programs must understand the industry
requirements
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Academia versus SCM
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In-house formulisation of knowledge transferEducate, improve, develop, retainKnowledge managementLearn 1 role up and 2 down“Lost” knowledge is hard to replaceOverlap key logistic positionsHigher “head-count” for a short periodChallenges?
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Education by employer
CEO: “What if we train our employees and they leave?”
COO: “What if we don’t and they stay?”
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Education by employer
Employers develop their own program for their own requirement
E-learning & “on-the-job”No loss of employeeNot short termQualification recognition/accreditation
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Employee role-rotation mentorship programs
Learn 1 role up and 2 downEnriches employeesProvides management a “fallback” optionIncreased flexibilityTalent exchangeEmployees better understand the business
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Become an “employer of choice”Industry commitment requiredIncentivize employeesFormualised career pathRemuneration
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Remuneration – is it worth it?
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Become an “employer of choice”Work/life balanceDriven from the top downAdvertise the opportunitiesCulture
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Culture versus Strategy?
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Become an “employer of choice”Work/life balanceDriven from the top downAdvertise the opportunitiesCultureCulture versus Strategy?
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The alternativesIs there an alternative?There is no choice
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BI analytics Source: CGI (2015)
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Questions
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ReferencesHarrington, L., & Smith, R. H. 2015. Automotive Industry Brief: Solving the
Supply Chain Crisis. Maryland: DHL & University of Maryland.Evolution of role.
Noble, D. 2016. The Skills Shortage Facing Global Supply Chains. Supply Chain Digital, [Online] 1 (1). pp.1. Available at: http://www.supplychaindigital.com [Accessed on 2 December 2015].
Spikes, L. 2015. Technology is your Catalyst for Change. Procurement Leaders Global Intelligence Network, [Online] 1 (1). pp.1. Available at: http://www.procurementleaders.com [Accessed on 1 December 2015].
Mehta, A. 2015. Shortage of Supply Chain Professional: Some Facts. Procurement Leaders Global Intelligence Network, [Online] 1 (1). pp.1. Available at: https://www.linkedin.com [Accessed on 1 December 2015].