Industry around the world is facing a threat to its future; the threat is not about product innovation, technology, safety, or supplier shortages. It is about people - specifically supply chain talent, and the rapidly growing shortage that could put the brakes on the sector’s ability to grow and prosper. Supply chain executives believe it had become more difficult to recruit and develop talented employees in more recent years.
From marketing to data analysis and human resources, supply chain companies are seeking managers who can work across departments.
The number of available positions is already increasing and in the coming years as the Baby Boom generation reaches retirement age the need for workers with experience in engineering, analytics and robotics continues to rise. Where will the talent come from?
Difficulties encountered:
- Lack of available talent for management positions in the supply chain area.
- Misconception about what it means to work in supply chain management.
- Companies have long neglected the supply chain function, considering it of lesser importance than sales, marketing, finance and oth
er traditional job functions. - People new to the industry who do not realise the significant amount of collaboration and relationship management required between customers and suppliers to be successful.
- Supply chain managers are retiring faster than they can be replaced.
- There is a break in the pipeline of people in their 30s who can mature to fill those positions, and ensure continuity.
- Supply chain exceeds budgeted program costs.
- Final product delays, which ultimately results in a drop in market share.
- Few resources are dedicated to developing local talent.
Tackling the talent gap for this sector is not optional - it’s critical! Given this environment, what strategies can the sector pursue to develop and sustain its supply chain talent pipeline?
- To take a proactive stand on resolving the talent gap.
- Industry working with universities and trade associations to develop supply chain education programs, designed expressly for the sector.
- Identifying and attracting new talent within college students.
- To sponsor students’ projects and looking for guest-speaking opportunities on college.
- Establishing learning platforms on a global scale to ensure competitiveness and drive talent.
- By turning recent grads into well-rounded supply chain leaders of the future.
- Hiring of college graduates directly out of business or supply chain management programs.
- Helping workers acquire new skills in different job functions.
- Prioritising diversity of experience and moving employees through various stages of the supply chain earlier in their careers.
- Taking matters into the company’s own hands to develop its own education programs.
- Exploring available resources and commit to self-learning, by pursuing certificates offered by local recognised and respected universities in order to understand the basic concepts.
- Internship is crucial to developing and applying supply chain skills.
- Developing more effective talent acquisition, development and retention strategies.
- Job rotation programs, talent exchange, and the promotion of cross-functional development; formal job rotation programs can be an effective way to grow people.
- By setting up formal programs where their soon-to-retire supply chain professionals work as mentors to transfer their knowledge to their younger colleagues, to secure the pipeline of talent for tomorrow. This may mean a higher head count within the organization for a time, but it is also an investment in the future success of the company. Management cannot afford to let such a valuable knowledge asset just walk out the door.
- The need to incentivise people to stay in supply chain, and that comes from providing competitive salaries and establishing attractive career paths for advancement. Equally important, includes a recognition within the organization.
- Manufacturers, suppliers, logistics service providers, educational institutions and industry associations need to work together on this. Collaboration needs to be aligned.
- When recruiting globally it also works in the company’s favour.
- Promising engineers and project managers the opportunities to work around the world, develop expertise on multiple types of projects and move into leadership roles more aggressively.
- Extensive supervision on-site to quickly develop team members’ skill sets while reducing safety risks and minimizing mistakes.
- Opportunities for apprentice to take lower-level roles on projects under the supervision of senior people, providing the apprentices real-world experience and mentoring.
- Creating our own talent and seeding the market with alumni for the future.
Solving the talent shortage calls for fresh thinking, new approaches, and collaboration on an sector-wide scale. People want a company that can offer career growth, opportunity, good training and mentoring programs, a good management style and corporate culture, and job security or stability. If you can offer these things, you become an employer of choice. Companies with the best talent will be more profitable and gain an advantage. We can solve this issue, but it will take time and it will take a major collaborative and concerted effort. As an industry, we really don’t have a choice.
How are you developing tomorrow’s leaders, from within, through professional program’s or through internships?
Dave Food
Prophetic Technology