As reflected by many of our prior Supply Chain Matters commentaries, there is a talent management crisis across multi-industry supply chain management communities. The crisis arrived in the environment where the urgency for end-to-end supply chain visibility and informed decision-making has reached a peak requirement. At the same time, the wave of highly experienced baby boomers working within SCM disciplines continues to retire. The supply chain talent and skills need is reflected not only in the need for hiring new talent but in the re-skilling of existing SCM focused professionals.
Earlier this month, Penn State’s Smeal College of Business, an institution with broad recognition for excellence in supply chain management undergraduate and graduate programs, unveiled a new and unique Supply Chain Leadership Academy. This new program, provided in an online delivery model, is unique in that it formulated from the stated needs of Penn State’s corporate sponsors in providing an online boot camp that build upon an existing organization’s internal supply chain expertise and addresses critical new required supply chain management skills.
Supply Chain Matters reached out and spoke to Steve Tracey, Penn State’s Executive Director for Supply Chain Research to learn more about this program. According to Tracey, while current supply chain management focused professionals are knowledgeable and efficient within the various pillars that come under the umbrella of SCM, more and more, corporations seek added skills focused on the various touch points of the end-to-end supply chain network. Additionally, CorpU, which describes itself as a partner with the world’s leading business and academic organizations pioneering new approaches to virtual learning communities, was seeking a well-respected academic partner to fulfill needs in supply chain management education for working professionals. This new boot camp program is the initial product of this collaboration and Tracey noted that interest levels among corporations are very high.
Participants will partake of 6 module courses delivered in 3 week time intervals. Tracey emphasized the design as being cohort based applied learning, addressing specific challenges specific to the individual sponsoring firm. Soft skills such as those related to project and change management as well as internal and external based collaboration are noted as emphasized in this program. Faculty will consist of two noted Penn State professors as well as two experienced practitioners. Average boot camp size is described as 20-50 people. Boot camp graduates are awarded a Professional Certificate in Supply Chain Integration From Penn State.
Supply chain organizational leaders desiring further information about this unique program can review a dedicated CorpU web site page.
It has been a little over a year since the Supply Chain Council (SCC) announced that it would be merged into APICS. The SCC provided corporate and public sector members access to supply chain research and the well-recognized Supply Chain Operations Reference (SCOR) model methodology and benchmarks for evaluating supply chain metrics and performance. Upon its merger with APICS, the organization was renamed APICS Supply Chain Council (APICS SCC).
Today, APICS announced an important milestone related to this merger, namely three different engagement programs that should allow organizations to take advantage and leverage both APICS and APICS SCC benefits. As our readers may be aware, APICS has catered to individual supply chain and operational professionals in their needs for education, certification and career advancement. APICS SCC caters to corporations and service providers in their needs for research, supply chain frameworks and educational requirements.
The three programs announced today, in-capsule, consist of the following:
APICS SCC Affiliate – according to APICS this program offers tiered level benefits depending on an organization’s level of needed participation. Current affiliates are comprised of more than 400 globally based organizations that actively encourage individual APICS memberships for their employees. With today’s announcement, employees gain access to APICS SCC research projects while corporate affiliates are able to sit on the APICS Corporate Advisory Board. Affiliates have the opportunity to take advantage of group training programs or receive discounts to APICS SCC training including SCOR. Premier Corporate, Corporate and Public Sector affiliates gain access to SCORmark Benchmarking consisting of 20 years of accumulated SCOR data. A specific APICS web page describes the Affiliate Program.
APICS One- members are eligible to provide up to 500 employees with APICS enterprise memberships to support individual development needs and the organizational improvement opportunities supported through the APICS SCC premier corporate affiliate category.
APICS Sponsor- companies are provided with a license to utilize and incorporate APICS SCC frameworks and other APICS published material into products, services or marketing materials. The program is further described as offering opportunities for engagements with APICS SCC affiliates, access to benchmark reports, publications and research, as well as tailored marketing opportunities. There are three different tiers of available sponsor participation which are outlined at this APICS web page link.
In a previous Supply Chain Matters commentary we questioned what we felt was the slow progress of the overall merger and combined benefits for both APICS and APICS SCC. Today, the APICS web site has been completely revised and features a new design and feel. These newly designed program offerings should help organizations to be able to take advantage of the combined body of knowledge for both organizations, as well as the ability to provide needed education for different audiences.
This is an important milestone.
We encourage organizations that are engaged with either of these new programs, or are contemplating taking advantage of such programs to let us know your thoughts and impressions. You can email us at: info <at> supply-chain-matters <dot> com.
In our prior Supply Chain Matters posting we called attention to the evolving attraction for leveraging predictive analytics in supply chain decision-making practices which has added to the continued pent-up demand for data scientists. We highlighted a guest contribution indicating that big data and more predictive analytics capabilities can be non-effective if not preceded by a rigorous review in determining if current key performance indicators (KPI’s) and business metrics are actually capturing the true drivers of business outcomes.
During SAP’s recent 2015 Sapphire and ASUG conference, SAP co-founder and Supervisory Board Chairmen Hasso Plattner’s conference keynote touched upon this very aspect, which warrants repeating. He touched upon the notion of the boardroom of the future, not being occupied by reviewing historically based KPI’s but rather “fact-based management.” Hasso described this as a “massive change on how companies manage information” and further, “we cannot hide data anymore”.
That last statement may well resonate with our readers since too often, KPI’s are selected to measure can-do performance areas tied to individual organizational, team and personal bonuses that do not necessarily link to an overall business outcome required for products, processes, margins and/or risks. They are too- often, anchored in past performance coupled to a consensus of what can be comfortably accomplished vs. what should be expected given the industry and business environment. Concerning or bad news can be hidden until it is too late for the business to overcome the effects.
In his keynote, Hasso addressed such a change as “moving from dashboards to active boards.” That is an important and far different metaphor.
It implies continuous and changing analysis grounded in overall outcomes and assumes that business events will indeed be constantly changing and that performance metrics should set both a target and a constant moving analysis of potential outcomes based on various business and product scenarios. Such a moving analysis assumes that organizations and teams can be fluid and flexible, responding to market opportunities, threats or risks in a more proactive and collective manner and in the context of best desired outcomes. It further implies that management is very actively engaged in understanding how the end-to-end supply chain is contributing or detracting from desired and/or expected outcomes. Bonuses and performance are tied to best enterprise outcomes vs. individual outcomes.
Such a change does not occur overnight and will take time to evolve. As noted in a previous commentary, executives need to be granted the broadest end-to-end supply chain leadership and accountability with certain mandates to address existing value-chain challenges and to improve business outcomes. Supporting staff with data science skills, while critical, are not the primary skill need. Knowledge of the business, the end-to-end supply chain, and organizational change management needs to be coupled to data science skills.
In the meantime, we advise supply chain leaders to indeed recruit talent with data science skills, and then rotate these new superstars among various supply chain functional and geographic assignments. Challenge them with local problems and with introducing positive overall change. Insure active mentorship and sponsorship with the end goal being a select group of business analysts that can take on the most difficult challenges while garnering the respect of others.
The June 8th edition of Bloomberg Businessweek features the article, Help Wanted: Black Belts in Data. This article reinforces others brought to reader attention by Supply Chain Matters, that a new techie is in demand across the globe, that of data scientists. The article cites a rather timely McKinsey study indicating that by 2018, the U.S. alone may face upwards of a 60 percent gap between supply and requisite demand for deep analytic talent. Once more, because of such demand, starting salaries are reported to now exceed $200,000. But there are other important and crucial aspects related to the pent-up demand for data scientists, namely that the need relates to both technical as well as organizational change skills.
In August of last year, Supply Chain Matters called reader attention to one of the hottest skills demand areas for supply chain and decision-making focused technology, that being the need for data scientists. We cited a report published by The Wall Street Journal describing the scramble to find talent both experienced data analysis and interpretation skills along with knowledge of customers, markets and business processes. Our takeaway message was that organizations not actively investing in identifying talent needs and nurturing the skills needed to harness such analytics focused technology will not only not be able to take advantage of such capabilities, but may well find themselves with a distinct competitive disadvantage.
We further featured a follow-up Supply Chain Matters guest commentary provided by Joannes Vermorel, Founder and Chief Software Architect at Lokad SAS, a technology provider specializing in quantitative optimization of decision-making needs for supply chain and commerce leveraging Big Data and cloud computing concepts. In this commentary, The Challenges and Obstacles of Big Data and Analytics Applied in Supply Chain and Commerce Decision-Making, Vermorel provided two powerful observational insights; namely that Big Data or predictive analytics efforts only succeeds with heavy support from top management, and that most Big Data focused initiatives suffer from “Naïve Rationalism”, that is, the usage of metrics that look scientific from afar, but that actually fail at truly capturing the drivers of the business. Vermorel’s powerful observations need repeating:
“Most of the Big Data initiatives that I see in supply chain fail short on both points: companies are trying to introducing such innovations without committing themselves to the drastic organizational changes involved; and companies are letting their data scientists, who are mostly clueless about the business, overlook too many critical business drivers because management is not sufficiently involved in what appears to be a very technical undertaking.”
The Businessweek report notes how well respected universities are scrambling to initiate formal academic undergraduate or post-graduate programs concentrating on data science. Summer intern programs involving students with data science skills are reportedly paying $6000 to $10,000 per month.
However the message for both supply chain focused organizations and students needs to include not only the requisite technical skills of data science and analysis, but deep knowledge of value-chain processes, cross-functional program and change management concepts. Finally, before getting carried away with hyper focused recruitment efforts, senior leadership and sales and operations planning teams need to couple any talent management recruiting efforts with efforts directed at actively practicing a deeper understanding of key business metrics that lead to expected business change or changed business outcomes. Launching the brightest data science talents on misunderstood or misdirected decision-making practices is a waste for the candidate as well as the organization.
Finally, we encourage students and graduates seeking to pursue data science careers to further channel their studies toward a deeper understanding of the cross-business and cross-functional aspects of supply chain management in additional to the technical aspects of data.
Supply Chain Matters continues with our efforts to provide varying global-wide perspectives and viewpoints regarding the recognized challenge of supply chain talent retention. In order to do so, we from time to time, invite global search firms to provide their perspectives.
The following guest posting is contributed by Richard Paisley, Group CEO for global-based supply chain recruitment experts Proco Global.
The need for supply chain professionals, from truck drivers to warehouse managers, is only going to increase. People in senior positions continue to retire at a regular rate, clearing the floor for new talent. So why does the availability of staff continue to diminish in the US and across Europe? Why is the gap increasing?
This infographic produced by supply chain executive search specialists Proco Global displays, amongst other sources, some of the PwC’s 2014 CEO Survey’s results in a striking fashion. Perhaps the most revealing finding is that 93 percent of the CEOs polled know that they need to change their talent retention and attraction methods, but 61percent have yet to act. Another finding is that the most difficult positions to fill are in the areas of planning which require both a technical mastery of technology and an organizational understanding of business drivers.
In terms of main concerns, retirement is nothing new to a well-reported aging workforce and new skills will always be required with advancements. What’s noticeable, is the worry about talent being pulled away to other sectors. The aforementioned percentages suggests that the majority of companies aren’t doing enough to reverse the tide.
The labour gap in Europe’s supply chains is expected to reach 8.3 million by 2030.Fghting off poaching from other industries will be vital to keep this number down. To do this, supply chain needs an overhaul. It can start by plotting its direction towards more appealing practises, including economic, environmental and social responsibility.
Official reports are widespread and all pull in this direction. The World Economic Forum recently claimed that firms with responsible supply chains experience a “triple supply chain advantage”, namely increased revenue, reduced costs and improved brand perception. While money will always be the main concern, the latter has a major role to play in overcoming the talent shortage.
While some would say there are not enough people to fill these positions, these young people do exist. While an aging workforce is a major reason for much of the talent leaving the industry, an image problem is at least partly responsible for the lack of people from the next generation joining it.
By moving towards more transparent, sustainable operations, such as ensuring greener processes and ethical working conditions, firms from all over the globe could be perceived as more attractive employers. While this won’t solve the talent shortage alone, it could make the industry more tempting.
If this is combined with renewed efforts to reach the potential SCM leaders of the future, the talent gap does not have to be permanent.
About the Author: Richard Paisley founded Proco Global in 2008 in response to a very obvious gap in the market – executive level recruitment focused solely on end-to-end supply chains (procurement, manufacturing, and quality and operational excellence). Over the last six years he has expanded the business into Asia, the Americas and continental Europe for two very simple reasons: to ensure we have a presence in those locations where our clients need us, and to strengthen the specialist nature of our approach to supply chain executive search.
Note: Proco Global was invited by Supply Chain Matters to submit this guest commentary and has no financial or other affiliation with our organization.
The Logistics Report feature of The Wall Street Journal (primary sponsor being UPS, Inc.) recently featured a commentary- Companies See ‘Massive Shift’ in Search for Supply Chain Talent. (free metered view)
The article points out that the growing complexity of various industry supply chains and the increasing need for advanced technology applications has significant consequences in talent management. A profound quote from a recent presentation from John Kern, Cisco Systems Senior Supply Chain Operations Manager observed:
“The supply chain industry is undergoing one of the most massive talent shifts we have ever seen.”
Kern is quoted later in the article as indicating:
“The biggest challenge today is, there is no superman or superwomen who is able to cover all aspects of the supply chain.”
Those two statements alone, by our lens, are indicators of a significant gap.
Other talent management challenges are noted by the WSJ from Thomas Falk, recently appointed Chief Supply Chain Officer at Kimberly Clark, and by Peter O’Brien, Global Supply Chain Practice head of executive search firm Russell Reynolds.
The article’s primary takeaways seem to be that as supply chain functions continue to be consolidated under singular high level executive leadership, there is a growing need for far broader supply chain strategic leadership and knowledge skills at the top level and greater levels of problem-solving, change management and technology leveraging skills at other levels. The message is one of urgency, namely that companies that do not invest or cultivate talent now, will regret that decision down the road.
Supply Chain Matters can certainly echo such a message. However, beneath the surface, we feel there is an often overlooked part of this message, that being that the organization has to acknowledge and believe in the strategic importance of the supply chain network vs. that of a tactical or cost center focused organization that has a sole perspective of reducing direct and indirect costs.
As more and more of a product’s value-chain is assumed by a firm’s key suppliers, then the message of investing in and adequately compensating talent applies to suppliers as well. As an example, consider Apple’s, Cisco Systems, Kimberly Clark or Procter & Gamble’s supply chains, where product and process innovation as well as time-to-market often originate from key suppliers. Leadership implies a skill in nurturing joint incentives that reward innovation, agility and cost control across the product and services value-chain. As two specific up and coming millennial stars articulated to us recently: “Anybody can cut costs- the challenge is more often the balancing of various stakeholder, supplier and business interests.”
The supply chain talent stars of the future will flock to those organizations that understand the strategic value of the firm’s entire value-chain, who embrace shared risks and rewards who recognize and reward knowledge, creativity, technology savvy and cross-organizational collaboration. (our emphasis)
We encourage readers to share their perspectives on the imperative of supply chain talent management needs as well.