Challenges and Opportunities in Supply Chain Talent ......Challenges and Opportunities in Supply Chain Talent Management September 17, 2015 - 2 - Michigan State University, 2015 David

Challenges and Opportunities in Supply Chain Talent Management

September 17, 2015

Michigan State University, 2015- 2 -

David Closs

David J. Closs, Ph.D.o The John H. McConnell

Chair in Business Administration, Department of Supply Chain ManagementThe Eli Broad College of Business

o Michigan State Universityo Ph. 517-432-6406o [email protected]


John Healy

John W. Healyo Vice President & Managing

Director, Global Talent Supply Chain

o Kelly ServicesKellyOCG

o Troy, MIo +1 248.244.5442o [email protected] @unclejunkmuses

mailto:[email protected]


Webinar Structure

• Supply Chain Management: Beyond the Horizon –Project Overview

• Initial Findings– Concerns– Talent expectations– Talent acquisition and qualifications– Role of talent in an automated environment– Leadership– Talent requirements when implementing S&OP– Practices

• Questions and Answers




SCM: Beyond the HorizonKey Overarching Questions

• How is supply chain management becoming a strategic asset?

• What emerging trends or developments will shape the future of supply chain management?

• Why are some firms more successful with strategic supply chain management than others, even though they seem to have the same tools, systems and practices?


• David J. Closs, Ph.D.

• M. Bixby Cooper, Ph.D.

• Patricia J. Daugherty, Ph.D.

• David J. Frayer, Ph.D.

• Stanley E. Griffis, Ph.D.

• Nick Little, MCIPS

• Steven A. Melnyk, Ph.D.

• Gary L. Ragatz, Ph.D.

• Judy M. Whipple, Ph.D.

Michigan State University Team


Project Outline

• In-depth interviews with 50+ medium and large firms (North and South America, Europe, Asia, Africa)– Manufacturing, Retail, Service industries

• Discussed:

• Research Method– Interviews, recordings, coding, content analysis

• Environment (Internal & External)

• Functional Strategies

• Supply Chain Practices

• Performance Measurement

• Organizational Structure

• Strategy Formulation

• Strategic Initiatives

• Goals


Insomnia

• Integrated solutions• Talent and leadership• Complexity and risk• Threats/challenges• Compliance• Cost/purchasing issues

10


Insomnia

• Integrated solutions• Talent and leadership• Complexity and risk• Threats/challenges• Compliance• Cost/purchasing issues

11


Today’s Topics

• Overarching question regarding the challenges of SCM talent management and how firms are addressing it:– Concerns– Talent expectations– Talent acquisition and qualifications– Role of talent in an automated environment– Leadership– Talent requirements when implementing S&OP– Practices


Concerns

• “The supply chain function is not recognized enough in our industry. We have to fight to put talented people in supply chain.”

• “I think with the younger generation, relocation is really a push and that’s not good or bad, it’s just the way it is and we’ve need to figure out how we’re going to adjust our business model to be able to bring the best talent in.”

• “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.”


Concerns

• “How do you keep people engaged and motivated in a flat organization, there are fewer opportunities.


Concerns Conclusions

• Need to fight to put the best people in supply chain.• Need to change employment model to bring best talent

in.• Keeping people engaged and motivated in a flat

organization.• Have fewer concerns about getting leadership than the

next level.


Healy Comments from Kelly OCG

• Increasing the visibility of the supply chain role related to company strategy

• Marketing the role to your “high potential” workforce• Formation of “Talent pools”


Talent Expectations

• “The one thing that we have noticed with today’s students is the expectation of constant movement. Keeping this generation challenged and calibrated correctly is difficult. We have seen solid talent leave the firm because of unrealistic expectations”

• “From a talent perspective, we see good talent, the hard part is keeping that talent retained. This new generation is a challenge to get them to be realistic about their expectations.”


Talent Expectations

• “One of the things that we need to do as a company is provide the opportunities and leverage a mobile workforce at a salary and professional level to our advantage.”

• “So yes we are seeing a change, now what we have to do and we have partnerships with the top supply chain universities in the nation to keep out 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.


Talent Expectations

• “We all worry whether we are actually developing the right capability and skill set for this company to be successful in the future particularly when you start talking about the technology changes, the way that people like to work, and the millennials short term perspective. Kids expect to have 4 to 5 different experiences, work more remotely, expect to move faster, and are not enthused about paying their dues.”


Talent Expectations

• The issue with millennials is that they don’t really want flexibility in the schedule, they want a different work style and with what we do here, you can’t do that without being on site and collaborating.”

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


Talent Expectations

• Getting the new generation to be realistic about their expectations.

• Expectations of constant movement• Leverage mobile workforce to be an advantage.• Ensure our talent management and talent recruiting is

always top of mind at university suppliers.• Our logistics centers have recruited 40 percent of its

employees from the retired military.



• Reverse course here….when supply is low and demand is high, who needs to be realistic and adapting expectations?

• Recognize the diversity of roles in the supply chain discipline…leverage opportunities for movement, focus on integration

• Talent Pools


Talent Acquisition

• “We help sponsor supply chain competitions. It’s helping give back but it also helps the development of potential candidates for us and for the industry overall. We recognize as an industry the we’re kind of a smoke stack type industry in a lot of the views of the millennial’s yet it’s an exciting challenge.”


Talent Qualifications

• “Our leadership is the result of a talented workforce. We have a lot of personnel with Masters degrees and even the factory assemblers have at least a Bachelor’s degree because it is too difficult. Even the factory works have to understand the integrated framework.”

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


Talent Acquisition and Qualifications

• Increased visibility on campus particularly for smoke stack industries.

• Even the factory worker has to understand the integrated framework.

• Create more opportunities outside their site or business unit.



• Free Agents and competitions…Topcoder• Talent Development….stretch assignments, specifically

looking at segments of talent outside of the formal supply chain discipline


The Role of Talent in an Automated Environment

• “We typically are looking for something less than a five year payback on any automation that we use. You know the biggest barrier of implementing this is giving the consideration to the labor force that they deserve. We have a lot of people that have been very committed and tenured supporting the business and how do you go and do a transition and minimize the impact on the loyal employees.”


The Role of Talent in an Automated Environment

• “We’re putting in a fully automated grocery warehouse that is basically completely robotic, induct pallets and out come store pallets and so how do you create an intermediate step where people can come in and get some technological expertise such as a certification.”


Automation Conclusions

• Minimizing the impact of automation on loyal employees.• Create an intermediate step where people can come in

and get some technological expertise such as a certification



• What new roles and competencies are needed?– Vendor management– Innovation champions– Capability brokers– Design thinking


Leadership

• “A major challenge is to turn out the corporate leaders as well as to grow the analysts to be true supply chain professionals.”

• “We are using more energy over the last couple of years around succession planning and talent management.”


Leadership Conclusions

• Develop analysts to be true supply chain professionals.• Increased efforts at succession planning and talent

management.



• Choices….


Talent Requirements when Implementing S&OP

• “About 15 months ago, we implemented a new technology and process along with the first central command center for supply management in the company which brought about $24 million of net income value to the company, simply by doing all the great things we need to increase our customer service scores and investing in some technology while putting the planning center in a tax advantaged nation.”



• “In addition, we had a company culture that was trained in a certain way to do things and we had to go, with this new influx of talent and capability who came in guns blazing looking to do great things, they had to temper and ensure that they were selling the value of the capability rather than just saying it’s corporate initiative and we’re going to do it.”

• “You need to have folks who can technically hack it in an environment like a JDA planning tool or demand planning where they know some stats, be collaborative with colleagues, and manage conflicts with ornery sales people.”



• “What are the investments they’re making in their internal university and training programs and also moving people around to broaden their exposure to other parts of the supply chain.”

• “You are training someone to take over from a senior person and the trainee leaves. This puts into question whether we are actually doing it correctly. The plan is to strengthen the junior training capacity for the positions that can’t be easily replaced.”


S&OP Conclusions

• Explain the rationale behind the decisions related to S&OP.– Control towers– Tax implications– Expertise

• Sell the value of S&OP to employees.• You need to have folks who can technically hack it in an

environment like a JDA planning tool or demand planning where they know some stats, be collaborative with colleagues, and manage conflicts with ornery sales people.”



• Talent Expectations• Sell the role and make the successes visible

– Talent– Projects– Investments– Outcomes


Practices

• “Supply chain has actually gone out with our sales team to share some of our supply chain best practices with our customers. We believe that it is a competitive advantage where we are helping the sales team be viewed as something more than an equipment seller because we are viewed to have domain expertise which we are willing to share.”

• “We are pretty darn flexible including everything from job sharing part time to work from home.”


Practices

• “We have an organization called Jump Start which is actually been formed just for employees that have less than five years of experience. It is for all departments so the young employees can network amongst each other, social events, share best practices between organizations. They have really embraced it.”

• “Develop talent with T shaped skills. They need to be both broad and deep. You are not going to get very far in this organization unless you develop your T shaped skills. In 2015, we think our supply chain team needs to have more depth in analytics for decision makers.”


Practices

• “I think with the increasing availability of data and analytics, there will be many more technologies that will enable the decision making that a hiring manager needs to make when they make a hire. Do I hire a temporary, do I hire a full time, do I hire an independent contractor.”

• “We are using Centers of Excellence to embed capabilities. Build the Centers of Excellence using expertise and overtime so that they actually own the processes.”

• “We have 30 percent of our workforce in our new manufacturing facility are people with disabilities and that’s a deliberate effort.”


Practices

• “Apply slating to taking things out of the Deli line approach where you assign certain key roles like sub-contract and material program management. Match the capabilities of the individuals with the program requirements and match the best chance of success with the individual experience.”

• “Collaboration in inspection, six-sigma, and Big data.”• “We have an initiative called ‘Blue-Collar Project,’ which

requires our employees to obtain either internal or national certification before starting their real job responsibilities.”


Practices

• “So I think we were probably too nice in the first round so we have decided to get a little more methodical during the internship process leading up to the offer letter. We then get much more assertive about expectations so that we are not so disconnected when they come in.”


Practices Observations

• Have SCM collaborate with sales calls to understand sales demands and share expertise.

• Increased demand workings hours and locations.• Create networking events to collaborate across

functions.• Develop talent with T shaped skills.• Increased possibilities of part-time, contract, and flex-

time talent.• Use Centers of Excellence to embed capabilities.


Practices Observations

• Increased use of disabled.• Match the capabilities of the individuals with the program

requirements and match the best chance of success with the individual experience.

• Increased desire for blue collar employees to obtain certification.

• Increased assertiveness regarding expectations prior to hiring interns.



• Great examples here!• Sales loves the credibility that Operations brings!

– Develop the story telling skills to bring it to life!


Conclusions

• It is increasingly important that firms become top-of-mind to students and primary suppliers.

• Firms are beginning to use different employment models as a means to develop a talent competitive advantage.

• Increase SCM collaboration with sales to understand cross-functional requirements and to provide increased value to customers.

• Increase consideration of T-shaped skills for employment acquisition and development.

• Sell the benefits of S&OP beyond the planners to understand the requirements for integration.


Healy Conclusions

• Think Differently!– A holistic view of the full population of talent available– Recognize the changing market dynamics– Talent Pools focused on specific competencies– Agile!

• Market the Supply Chain roles and successes within the company!


Interested in Participating

• Contact us at: [email protected]

• Participation

– Surveys– Case studies– Focus groups

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Questions?!?!


Thank You for Your Participation!

David J. ClossMichigan State [email protected]

John W. HealyKelly [email protected]



Documents

Challenges and Opportunities in Supply Chain Talent ......Challenges and Opportunities in Supply Chain Talent Management September 17, 2015 - 2 - Michigan State University, 2015 David