Simply the Best

"Building effective, efficient procurement talent"

Synopsis

Why 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.

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

Why?

Technology

Increasing demand

Expanding demographic void

Rapidly evolving “skillset” requirements

Potential shortfalls in academia

Negative bias towards the logistics “image”

The perfect storm? Source: Mehta, A. (2015)

Technology versus employee capacity

Legacy employees

Evolution of Log IS

The cost of human error

CPD?

Increasing demand

Increased complexity of supply chains

Demand for supply chain professionals exceeds supply by a ratio of 6 to 1

The future could see a ratio of 9 to 1

Graduate versus vocation

Expanding demographic void An aging workforce

Europe and America face the same talent “exodus”

Retirement versus replacement

Middle management shortage

Fallout from the 2008 financial crisis

The talent gap

29%

61%

10%Source: Supply Chain Insights LLC, 2014.

Entry Level

Middle Management Level

Executive Level

Expanding demographic void An aging workforce

Europe and America face the same talent “exodus”

Retirement versus replacement

Middle management shortage

Fallout from the 2008 financial crisis

Rapidly evolving “skillset” requirements

Supply chain managers – growth of role

Growth of role

Rapidly evolving “skillset” requirements

Supply chain managers – growth of role

Competencies

Broader qualifications required

Multiple skillsets

A developing environment

Potential shortfalls in academia

The capacity of academia to create new talent

60% of new logistics roles require skills that only 20% possess

Only 1.3% of all business studies are dedicated to SCM, logistics & transportation

First find then train talent

University placements in industry

Negative bias toward the logistics “image”

Lack of understanding

Not a “career path”

Inadequate educational programs

Attracting the “young”

Change sensitive

Solving the talent crisis

Liaison with the logistics industry

“In house” formulisation of knowledge transfer

Education by employer

Employee role-rotation mentorship programs

Become an “employer of choice”

Liaison with the logistics industry

Must be proactive

Collaboration

A learning platform

Academic programs must understand the industry requirements

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

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Liaison with the logistics industry

Must be proactive

Collaboration

A learning platform

Academic programs must understand the industry requirements

In-house formulisation of knowledge transfer

Educate, improve, develop, retain

Knowledge management

Learn 1 role up and 2 down

“Lost” knowledge is hard to replace

Overlap key logistic positions

Higher “head-count” for a short period

Challenges?

Education by employer

CEO: “What if we train our employees and they leave?”

COO: “What if we don’t and they stay?”

Education by employer

Employers develop their own program for their own requirement

E-learning & “on-the-job”

No loss of employee

Not short term

Qualification recognition/accreditation

Employee role-rotation mentorship programs

Learn 1 role up and 2 down

Enriches employees

Provides management a “fallback” option

Increased flexibility

Talent exchange

Employees better understand the business

Become an “employer of choice”

Industry commitment required

Incentivize employees

Formualised career path

Remuneration

Work/life balance

Driven from the top down

The alternatives

Is there an alternative?

There is no choice

BI analytics

Source: CGI (2015)

Questions

References Harrington, 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].