Transportation/Supply Chain Talent Shortage ... Transportation/Supply Chain Talent Shortage: Turning

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Transcript of Transportation/Supply Chain Talent Shortage ... Transportation/Supply Chain Talent Shortage: Turning

  • Transportation/Supply Chain Talent Shortage: Turning a Major Problem into a Massive Opportunity

    October 6, 2016, Glendale, AZ Southwest Association of Rail Shippers

    Nick Little Managing Director, Railway Management Program

    Assistant Director, Executive Development Programs The Eli Broad College of Business

    Michigan State University 517.353.5663

  •  Michigan State University, 2016- 2 -

    Nick Little – Background and Scope • High school thesis on freeway extension • Aspired to run the railway … but … • Joined British Rail pre-privatization from high school • On receiving end of great people development • On giving end of (great?) people development • Committed futurist • Practitioner turned quasi-academic • Problem or opportunity or both? • Observations

  •  Michigan State University, 2016- 4 -

    The Numbers • 6:1

    – Demand:supply for SC people globally • $95,000

    – Top MSU undergrad starting salary (++) • 48,000 increasing to 175,000

    – Truck driver shortage in NA per American Trucking Assoc. • 203,000

    – Number of SC Technician jobs in USA • 30% annual growth

    – SC jobs requiring trained & educated people • 247k to 216k

    – Rail jobs declined in last 12 months

  •  Michigan State University, 2016- 5 -

    A Major Problem

    • Not enough good people to go round • 6:1 – global jobs to available, acceptable people

    Source: SCTAI 2008

    • Wrong skills, in wrong place, at wrong time, in wrong quantity.

    • Impacts … – Costs increase – Retooling – Poaching – Rapid churn

  •  Michigan State University, 2016- 6 -

    Current Research

  •  Michigan State University, 2016- 7 -


    • Talent and leadership • Integrated solutions • Risk management issues

  •  Michigan State University, 2016- 8 -

    Talent and Leadership

    • Talent concerns • Talent expectations • Talent acquisition and qualification • Building and retaining leaders

  •  Michigan State University, 2016- 9 -

    Representative Quotes: Talent Concern

    Our entire leadership team is probably going to be turned over in the next 5-7 years; we’re all hitting that same age. We actually feel pretty good about succession plans for our replacements but it’s going down that next level and making sure we keep really good folks around so that they are going to be around when we get replaced so they can backfill their jobs.

  •  Michigan State University, 2016- 10 -

    Representative Quotes: Talent Expectations

    Younger employees don’t like the physically demanding nature of logistics-related jobs, and they are difficult to motivate. Our logistics centers have recruited 40 percent of its employees from the retired military. These employees are very disciplined and have significantly enhanced the morale of all employees.

  •  Michigan State University, 2016- 11 -

    Representative Quotes: Talent Acquisition and Qualification

    We’ve tried to create more opportunities for people to develop by working on projects outside of their site or business unit.

    We know what we have to do. We have partnerships with the top supply chain universities in the nation to keep our pipeline much more robust and spend more of our time in supply chain human resources ensuring that our talent management and talent recruiting is always top of mind.

  •  Michigan State University, 2016- 13 -

    Illustration of Talent Management Capabilities


    • Ability to work across organizational and firm boundaries • Ability to identify and manage value co-creation • Understand risk/reward trade-offs in the context of the

    entire value chain • Ability to apply analytics to identify and evaluate potential

    supply chain solutions • Cross functional and global rotations

  •  Michigan State University, 2016- 14 -

    Leadership Development Practices

    • Sourcing from the military • Apply mini-promotions to provide perception of

    movement • Make talent in non-hub locations feel part of the team • Partnering with universities to demonstrate path from

    internship to ultimate goal • Corporate university where employees can take

    credentials away • Gender and minority initiatives.

  •  Michigan State University, 2016- 15 -

    New Entrants

    • Sources: – Universities – Community Colleges – High Schools – Middle Schools?

    • Why follow a career in supply chain?

  •  Michigan State University, 2016- 16 -

    $60,000 $120,000$100,000$90,000$80,000$70000$45,000 $140,000 $160,000

    Supply Chain Integration Customer Support

    Product Development

    Supply Chain Management Connecting people to products and services across town and around the globe.

    Typical Education (or equivalent experience)

    Secondary Associate/ Vocational


    Postgraduate Master’s

    Postgraduate Doctorate

    Material Handler

    Driver Long Haul Driver

    Global Trade Control & Supply Chain Security

    Supply Chain Planning, Master Scheduling, Forecaster

    Production & Inventory Control Shop Floor Control, Dispatch, Expedite

    Warehouse Ops. Planner

    Demand Planner, Buyer, Buyer/Planner, Procurement Analyst, Procurement Agent

    Customer/Supplier Program Management

    Management (Production Control, Distribution, Logistics)

    Market, Program, & Product Development

    Packaging Engineering

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    $80,000 $180,000$160,000$140,000$120,000$100,000$60,000 $200,000 $220,000

    $35,000 $90,000$80,000$70,000$60,000$45,000$15,000 $100,000 $120,000


    Traffic, Transportation Planning

    Logistician, Import/Export Control

    Management (Logistics, Supplier & Supply Chain Management)

    Director/Executive Supply Chain Management

    © 2010 Supply Chain Talent Academic Initiative (SCTAI). Permission to use is granted provided copyright statement and logo are included.

    Less Years Experience More

    The above represents general industry data from various research sources

  •  Michigan State University, 2016- 18 -

    The Opportunity

    • Exciting area to work in – Analytics – Relationships – Negotiation – Operations – Fulfillment

    • No longer seen as merely the “rescue squad”

  •  Michigan State University, 2016- 19 -

    8 Reasons to Consider a Career in Logistics

    1. Job availability [at all education levels] 2. Annual income [BLS median $73,780/yr … $35.51/hr] 3. Location and relocation 4. Specialty options, competencies & industrial sectors 5. Career contentment

    – 89% better career opportunities – 79% happy with current job [CSCMP survey]

    6. Advancement opportunities 7. Entry level opportunities 8. Job security [“the Amazon effect”]

    Source: MHI

  •  Michigan State University, 2016- 20 -

    The New Normal

    • Strategic criticality • Wide range of capabilities, competencies, skills • Education and training

    – Many different solutions such as • Degrees • Certifications • Non-traditional learning • Internships • Rotational programs

    • Career path no longer vertical; now more lattice-like

  •  Michigan State University, 2016- 21 -

    Conclusions • People have talent • People are your best assets • People need to grow • People like to succeed • People have more capabilities than we realize • Supply chain is the greatest place to work!