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Global Supply Chain and Talent Development

University of Dayton

Abe Eshkenazi, CSCP, CPA, CAE

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Growing Awareness of Supply Chain and Operations Management

The profile of supply chain and operations management professionals is rising.

• Major news organizations discuss, e.g.,• Supply chain disruptions (2011 tsunami)• Bill of materials (Apple products)• Ethical supply chains (manufacturing work conditions)

• Some confusion: UPS “We love logistics” campaign

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Corner Office: Supply Chain Management (SCM) Strategy

Executive teams realize that supply chain excellence is a competitive advantage.Traditionally, the advantage was cost reduction:

• Operate lean and efficiently→ Reduce waste→ Reduce inventory→ Strategic use of capacity and assets

• Low cost labor

Focus now includes value creation

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Value Creation• New product introduction• Premium pricing• Expanded offering of value-added services• Customer service leading to customer loyalty• Expansion to new market segments

• Existing geographies• New geographical markets

• Leveraging opportunities from risk management• Stronger supplier relationships

The Chief Supply Chain Officer Report 2011, SCM World

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New and Growing SCM Challenges

• Supply chain risk• Supplier disruptions• Globalization-related

• Emerging markets as suppliers and customers• Availability of capital; recessions

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Supply Chain Strategy for Emerging Markets

About equally sourcing from and selling to emerging markets

Oriented primarily around selling/delivering to emerging markets

Oriented primarily around sourcing from emerging markets

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

44.0%

37.6%

18.4%

CSCO Report 2011, SCM World

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New and Growing SCM Challenges

• Sustainability – People, planet, and profit• Satisfy customer expectations• Government regulations

• Moving from board room to shop floor• Lack of consensus on definition and measurement of

sustainability

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SCM Sustainability Strategy

To create positive customer image and enhance brand equity

To satisfy government regulations

To have return on investment through cost savings

To have return on investment through sales increase

To ensure no disruption of supply

To fend off shareholder or exernal PR concerns

0.0% 20.0% 40.0% 60.0% 80.0%

75.0%

42.2%

32.0%

30.5%

30.1%

22.0%

CSCO Report 2011, SCM World

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New and Growing SCM Challenges

• Unskilled workforce• Knowledge gap between desired skills and actual skills

• Problem-solving• Global leadership

• Skill gap between mid-level and senior management• Real-world experience• Soft skills

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Big Gaps in Problem Solving, Real-World Experience

64%

54%

52%

43%

31%

26%

17%

15%

14%

8%

8%

41%

55%

53%

55%

16%

27%

15%

5%

24%

4%

7%

Problem Solving

Ability to Work in Teams

Broad Understanding of Supply Chain Concepts

Analytics

Real-World Experience

Ability to Integrate Information

Balancing IT and Business Skills

Global Business Leadership Skills

Supply Chain Technology

Risk Management

Virtual or Matrixed Team Management

Should Have

Actual Strengths

N = 356

Assessment Criteria and Weightings (Undergraduate)

40%

20%

40%

Undergraduate Industry Value

> 400 Respondents in 2010 Survey of Industry Sentiment on University Supply Chain Program Effectiveness.

Recruit mentions Number of respondents indicating that they recruit from this program.

"Best" mentions Number of respondents indicating they view this as the best program.

54 University Respondents to Request for Information on Supply Chain Programs

Undergraduate internships Internships required for completion of an undergraduate program.

Average starting salary

Undergraduate Program Size

54 University Respondents to Request for Information on Supply Chain Programs

Number of full time professors

Number of supply chain majors

Program Scope

Using the Gartner Talent Attribute Model as the Target Framework

Number of stations taught How well does curriculum align with all eleven stations in the model.

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Talent Management is

More of a problem at mid level

Similar across all levels

More of a problem at senior leadership

More of a problem at entry level

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

39.0%

36.2%

17.4%

7.4%

CSCO Report 2011, SCM World

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Role of SCM Professionals

Supply chain and operations management professionals need the knowledge, skills, and abilities to• Analyze and overcome supply chain challenges• Translate the organization’s mission statement and

strategies into operational and supply chain processes

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Skills for Success

Organizations are looking for professionals with• Agility

• Problem-solving capabilities

• Strong communication skills• Ability to communicate with departments unfamiliar with

supply chain terminology and processes

• Cosmopolitan, global-mindset

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Oct. 2010 Roundtable MIT Center for Transportation and Logistics

• “… many participants sought what they deemed a “super-human” combination of people who have technical depth, business breadth, and the soft skills to be a leader, influencer, and diplomat. Modern supply chains call for deep subject matter expertise, an integrated understanding of broader business imperatives, and the ability to lead coworkers while operating across countries and cultures.”

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How Will You Be Prepared?

Talent development through the university and association.

• University training• Build foundational knowledge and experience

• Professional association• Guidance and direction• Validate knowledge• Build connections

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Role of the University

• Provide broad overview of end-to-end supply chain• Operations management (OPS) program

• Hands-on experience• Capstone consulting project• Internships

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Role of the Association: Career Paths

• Provide career guidance• What roles exist• Education requirements• Competencies (hard and soft

skills)

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APICS Career Packs• APICS Career Pack provides practitioners, hiring managers and

human resource professionals with the information they need to understand:• the skills, knowledge and experience professionals in this position

must possess; • typical career paths; • responsibilities of the position.

• Positions include:• Supply chain manager• Materials manager• Buyer/planner• Master scheduling manager• Distribution and logistics managers

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Role of the Association: Basics

Outline the areas of knowledge required to successfully produce and deliver goods and services.• Define scope of supply chain and operations

management• Organize concepts• Establish common vocabulary

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Operations Management Body of Knowledge (OMBOK) Framework• Expanded Content

• Sustainability• United Nations Global Compact

10 principles• Corporate social responsibility• Reverse logistics

• Risk• Risk management framework• Risk mapping

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Role of the Association: Build Connections

• Chapter membership and annual conferences provide opportunities to:• network• be mentored• participate in case competitions• attend plant tours and• job fairs.

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Role of the Association: Post-graduation

• Certifications• Certified in Production and Inventory Management

(CPIM)• Certified Supply Chain Professional (CSCP)

• Volunteer opportunities• Serve on committees to advance the profession

• Enhance body of knowledge• Influence certification content• Conference planning

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CPIM Certification Courseware

• All 5 CPIM modules were redesigned and updated from 2009 - 2011.

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CSCP Certification Courseware

• Major changes made to the 2012 CSCP Learning System based on the CSCP Job Task Analysis performed in 2010.

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Rewards

• Dynamic role• Consideration for special projects• Certified professionals:

• Recognition• Qualified for more job roles• Compensation

• CPIM on average earn 17 percent more than non-certified• CSCP on average earn 9 percent more than non-certified

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Thank you.