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Logistics Executive - CEO Executive Series (December 2011)

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The supply chain of Womenomics …

The supply chain of Womenomics

Most of us have heard of the APEC Summit, held in Honolulu recently, if for no other reason than President Obama’s controversial decision to stop the custom of APEC leaders dressing in traditional gear. There was however less coverage of a slightly more significant event at the Summit called the San Francisco Declaration, which was passed by Hilary Clinton who humbly noted that it “might just make the history books”. This Declaration was designed to help promote women in the workplace but unlike its precursors, the San Francisco Declaration wasn’t motivated by altruistic design but by new economic data which suggests that women in the workplace have had more of an impact on economic growth than previously thought.

The idea that women can be key contributors is still a hard concept to promote in most sectors. Unfortunately this is particularly true in the supply chain and logistics industry, which is still largely male dominated. There is a lack of reliable data in the market place but recent surveys would suggest that globally the numbers of women participating in supply chain and logistics are as low as 20% - 30%. According to the industry group “Women in Supply Chain, UK” Women account for just 22% of the logistics workforce in England, compared with 46% in other sectors, and women hold fewer than 10% of the managerial roles in Logistics.

However there is evidence that things are changing. The number of women taking up tertiary study in supply chain and logistics is higher than ever, with universities globally running a wide range of initiatives to increase diversity. At the same time, there has been an increased awareness that supply chain and logistics qualifications are no longer a male domain. The result being that there is a growing pool of talented women coming through at university level.

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  • 1. CEO EXECUTIVE SERIES! 19 DECEMBER 2011The Supply Chain ofWomenomicsWith new economic data clearly identifying the impact ofwomen in the work-force, it is only a matter of timebefore women break the final barrier in Supply Chain,writes Cassandra Lee. Upcoming Events Supply Chain & Logistics Asia Summit 2012 The 6th World Cargo Symposium continues its focus on moving the industry from talk to action. Attracting over 1,000 key decision makers from the air cargo supply chain, the 2012 event will feature sessions on S e c u r i t y, e - C a r g o , I n n o v a t i o n , Operations and Commercial aspects . Held in Kuala Lumper, Malaysia March 13-15, 2012. (click here to find out more) Logistics Executive Global News “Relationship building is something women definitely Logistics Executive Singaporebring to the workplace, however they only succeed if they Team receives full CEI Licensesuse this ski! selectively as part of their repertoire. They With new regulations governingsti! need to be able to make the hard decisions ” Employment Agency activity being phased in by the Singapore Most of us have heard of the APEC Summit, held in Government by February 2012,Honolulu recently, if for no other reason than President Obama’s Logistics Executive was to be one ofcontroversial decision to stop the custom of APEC leaders dressing the first Executive Search firms toin traditional gear. There was however less coverage of a slightly successful complete all of the newmore significant event at the Summit called the San Francisco staff training required and to have itsDeclaration, which was passed by Hilary Clinton who humbly staff licensed. Logistics Executive’snoted that it “might just make the history books”. This comprehensive Employment LicenseDeclaration was designed to help promote women in the will allow the company to widen the range of services offered to its clients.workplace but unlike its precursors, the San Francisco Declarationwasn’t motivated by altruistic design but by new economic data Logistics Executive Websitewhich suggests that women in the workplace have had more of an Enhancement Completeimpact on economic growth than previously thought. Logistics Executive’s web portal just The idea that women can be key contributors is still a hard keeps getting better and moreconcept to promote in most sectors. Unfortunately this is informative. Thanks to the innovativeparticularly true in the supply chain and logistics industry, which is team at MMI (Me, Myself & I),still largely male dominated. There is a lack of reliable data in the Logistics Executive website nowmarket place but recent surveys would suggest that globally the features a range of news andnumbers of women participating in supply chain and logistics are insights, including the latest research,as low as 20% - 30%. According to the industry group “Women in employment market reports andSupply Chain, UK” Women account for just 22% of the logistics feature articles.workforce in England, compared with 46% in other sectors, and See: www.LogisticsExecutive.comwomen hold fewer than 10% of the managerial roles in Logistics.© 2011 - 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 1
  • 2. CEO EXECUTIVE SERIES! 19 DECEMBER 2011 However there is evidence T h e E co n o m i s t , o n e o f t h e discrimination from other womenthat things are changing. The w o r l d ’s l e a d i n g b u s i n e s s known as the “Queen Beenumber of women taking up magazine’s recently pointed out, Syndrome”. According to Debbietertiary study in supply chain and the increase in employment of Reich, National Terminals andlogistics is higher than ever, with women in developed economies Rail Manager at Cement Australiauniversities globally running a during the past decade has added “the Queen Bee is a directwide range of initiatives to more to global growth than China product of the incrediblyincrease diversity. At the same has. competitive work environmenttime, there has been an increased Unfortunately once they have and the many extra barriers thatawareness that supply chain and entered the workforce the women have to face to belogistics qualifications are no integration of women has not recognized”. In Debbie’s very successful career she says she found that frequently male colleagues make better mentors than women for this reason. Stefanie however adds that things are changing “It’s quietly encouraging that more of my clients are starting to recognize the untapped potential in these women”. By this she is referring to in increase in initiatives being i n t r o d u ce d to a t t r a c t m o r e women into the supply chain and logistics industry. These include flexibility in work-life balance programs (working from home and with flexible work hours), on- site child-care services and career- pathing and mentoring for women to fast track their careers. For example, Wal-Mart recently announced that they would invest $100 million to help women to develop their jobs skills, including women who work for Wal-Mart suppliers. This shift has been prompted Above: Labour-force participation rate in 2010 sti! shows more needs to be down by a range of new developments, to close the gap. Source: The Economist, November 2011 r a n g i n g f r o m n e w m a r ke t research to changes in industry.longer a male domain. The result been as successful. Most women In terms of research, therebeing that there is a growing pool have succeeded beyond the lower was a recent study by McKinseyof talented women coming and middle management tiers of indicating that women went fromthrough at university level. most companies. Stefanie Moran, holding 37% of all jobs to nearly The participation of women Country Manager of Logistic 48% in developed countries inin industr y at unskilled and Executive Australia is all too the last 40 years. Thecertificate level has also risen. familiar with this problem “I have productivity gains attributable toAll across Asia women have and interviewed many innovative and this modest increase in women’sco n t i n u e to d o m i n a te l i g h t commercially talented women overall share of the labor marketmanufacturing sectors (such as who just aren’t cutting through to accounts for approximately one-electronics assembly) that have the top layer”. quarter of the current US GDP.proved crucial to the region’s This has been attributed to a That works out to more than 3.5e co n o m i c t a ke o f f. It i s n o range of barriers such as the Trillion US dollars and more thancoincident that there has been a having a male dominated half the GDP’s of both China anddramatic increase in economic workforce and the perceived Japan.performance at a similar rate to juggling act that women are seen There is also a new age ofthe rate of women entering the to struggle with once they have a market turbulence ushered in byworkforce in Asia. After all, as f a m i l y. There is even the GFC and increasingly© 2011 - 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 2
  • 3. CEO EXECUTIVE SERIES! 19 DECEMBER 2011i n f l u e n ce d b y g l o b a l i z a t i o n . and to address the genderConsequently, the role of the imbalance issue. Logistics ExecutiveSupply Chain professional has Women are encouraged to www.logisticsexecutive.comincreased in complexity. The share their stories with the hopeoffshoot of this is a more favorable of developing other women and Australiaenvironment for women to gain offering further insight into Sydneymanagement level roles. means by which to advance their Phone: +61 2 8262 9800 To explain, Supply Chain and careers through the corporate MelbourneLogistics Leaders have had their maze. Corporate events, courses Phone: +61 3 9863 9488skills recognized and subsequently and networking opportunities are  their roles ele vated a s more to be hosted via the group and its Asia Shanghaidemands are placed on them. news has been well receivedThey have been challenged to amongst the more than 22,000 Phone: +86 21 6427 6697increase their soft skills to meet Supply Chain Asia members and   Singaporenew management needs in areas subscribers. Phone: +65 6818 9745such as interpersonal skills and In recent years there have Hong Kongpeople management, qualities, been a wellspring of similar Phone +852 3125 7654which have been inherently groups, too many to mention. All India attributed to women. According have been set up with a similar Phone +91 22 4090 7053to Debbie Reich “relationship philosophies and objectives. Forbuilding is something women example, an Au s t r a l i a n Middle Eastdefinitely bring to the workplace, government supported initiative, United Arab Emirates - Dubaihowever they only succeed if they Women Moving Forward (WMF), Phone: +971 4 361 6275use this skill selectively as part of is a formalised mentoringtheir repertoire. They still need to program run by the Chartered New Zealandb e a b l e t o m a ke t h e h a r d In s t i t u t e o f L o g i s t i c s a n d Wellingtondecisions“. Debbie went on to add Tr a n s p o r t Au s t r a l i a . T h i s Phone: +64 4 496 6730“women are also more adaptive in program, which is specificallytimes of rapid change as they a i m e d a t t h e Tr a n s p o r t a n dgenerally multitask more broadly Logistics (T&L) industry, is open For a copy of the 2011than men and with so many to any woman in any role, in any -2012 Logistics Executivedifferent streams and complexities region, in any T&L companyin Supply Chain, requiring wanting to provide high value, low Global Employmentconstant revision and evolution, cost, self-paced mentoring Report email:this agility increasingly dictates programs to develop and retain darrylj@logisticsexecutive.comcommercial survival”. women in the sector. To date more or Aside from government and than 200 companies have takencorporate involvement, it is the advantage of this program with kimw@logisticsexecutive.comground root initiatives that have demand growing.proven the most exciting as they In t h e U K , Wo m e n i n Cassandra Leehave been created on a voluntary Logistics UK was formed in 2008 S u p p l y C h a i n Pr a c t i c ebasis by forward thinking men and as a non profit group made up of Manager - South East Asiawomen within the supply chain over 2,000 women and men fromand logistics community. the logistics sector, set up to Logistics Executive Group Capitalizing on more than 15 In Singapore, for example, support the careers of women in years of experience in the SupplySupply Chain Asia, one of the the logistics field. The interest in Chain sector, Cassandra bringsregions leading industr y these and other groups significant depth of expertiseassociations is behind the newly demonstrates that there is a adding value to her clients andcreated the Women in Supply sustainable shift towards the candidates as she executes local,Chain Group, formed to facilitate investment in women worldwide. regional and global searches.this paradigm shift. The Group, Whilst slow in coming, Having held leadership roles inwhich will operate via LinkedIn incrementally these changes will mature markets, Cassandra hasand in conjunction with Supply add up to a major paradigm shift. developed a niche in tailoringChain Asia, offers an open forum The outcome will be greater solutions for firms which requireof support and mentoring to participation of women in Supply leaders with the depth ofwomen in the sector, with the aim Chain and Logistics and will expertise, the cultural comprehension and respect toof improving the career life of address the war on talent by execute strategic goals inwomen already working in logistics nurturing the very talented people developing regions and market(and therefore retain their talents) right under our noses. segments. © 2011 - 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 3
  • 4. CEO EXECUTIVE SERIES! 19 DECEMBER 2011SELECTINGYOUR 3PLPROVIDERSelecting the right Logistics partner can bemake the different between profit and loss,having satisfied customers or scrambling to re-tain business, there are some simple steps that The consequences of selecting an unsuitablecan make a! the world of difference, writes 3PL provider are significant. The potential impactMark Mi!ar. on your business’ supply chain ecosystem could adversely impact customer service, profitability andOutsourcing More to Less stakeholder value. The process to repair an Recent studies confirm that companies are now incorrect selection is lengthy, painful and costly.outsourcing more of their logistics activities - and Fully recovering from an unsuitable selection –they are outsourcing to a fewer number of service from tr ying to fix the situation through toproviders. migrating to a new 3PL provider - could take up to The 15th Annual Third-Party Logistics Study two years.found that 65% of shippers are increasing their use Engaging an external resource on a contractof 3PL services and basis can benefit the process of evaluation and The 2010 Global 3PL & Logistics Outsourcing selection by combining project leadership –Strategy survey by Eye-for-Transport reported that alleviating the burden on in-house resources fromare consolidating their vendor base of 3PL – the ’s the additional workload – together with industryproportion of shippers using between one and experience and expertise, to provide anthree service providers has more than doubled independent and knowledgeable perspective to theyear-on-year to 58%, whereas in 2009 almost 60% project.of shippers were using four or more 3PL ’s Process for selecting your 3PL provider Therefore, the selection of your Third Party To manage the RFQ (Request for Quotation)Logistics (3PL) provider is becoming increasingly process for selecting your 3PL provider, it is best toimportant to empower effective and efficient appoint a multi disciplined project team – typicallysupply chain ecosystems that are essential for between six and ten participants - and adopt acompetitive advantage. structured model for engaging and leading the With the increasing reliance on a fewer project team through the selection process.number of 3PL providers to execute even more of My recommended 9-Step 3PL Selectionyour supply chain, selecting your 3PL provider Process is as follows:becomes increasingly critical, and so it is essential 1. Define RFQ Requirementsto have both a clear selection process and 1.1. Detailed scoping of logistics model withinappropriate evaluation criteria. your supply chainChallenges in selecting a 3PL provider 1.2.C o m p i l e detailed requirements The selection process will typically take 3-4 specifications, metrics & templatesmonths and involves considerable effort managing 2. Issue RFQ to invited 3PL Vendorsthe RFQ (Request For Quotation) project. Withthe majority of 3PL service providers offering a 2.1.Pre qualify Vendors, execute Confidentialitycomprehensive range of capabilities, it can be quite Agreementschallenging to differentiate between them. 2.2.Manage bid process with 3PL’s, including dealing with queries© 2011 - 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 4
  • 5. CEO EXECUTIVE SERIES! 19 DECEMBER 2011 2.3.C o m p i l e q u e r i e s a n d In co m p i l i n g y o u r responses, collate and evaluation criteria, issue updates include both quantitative3. Receive Proposals from and qualitative factors, 3PL Vendors together with 3.1. Review proposals, map to consideration of future requirements and criteria potential requirements. Consider the following 3.2.Collate team views and seven main categories for feedback, compile your evaluation criteria to comments and questions support your selection Above: Technology selection is critical to ensure4. Vendor Presentations process. the right ROI 4.1. 3 P L to p r e s e n t t h e i r 3PL Provider – size Below: Can the Vendor offer the right warehous- company, solution and ing facility in the right location? and scale of their benefits operations, people and 4.2.Management discussions - finances, what is their process, people, pricing standing in the industry?5. Site Visits Ma r ke t r e p u t a t i o n , 5.1. Visit 3PL logistics facility ’s competitive positioning – view operations, and financial viability; processes, people are they the appropriate 5.2.Re v i e w c a p a b i l i t i e s , size for your company? capacity, competencies Amount of their senior6. Short List (as required) m a n a g e m e n t involvement in the bid 6.1.Continue with further opportunities for economies of process? Are they committed to exploration and evaluation scale? Are they flexible in their your company and your business? 6.2.Pr o b e d e e p e r i n t o pricing approach? Will you be important enough to capabilities, pricing their business? Consider their Technology – how robust models & assumptions corporate DNA – vision, values, are their information technology7. References approach to c o r p o r a t e platform and systems, and their 7.1.Consultations with Client responsibility. Are they a good ability to integrate with your IT references provided by o r g a n i s a t i o n a l f i t f o r y o u r systems? How do you rate their 3PL company? IT capability and competence? What prior experience do they 7.2.O b t a i n i n d e p e n d e n t Logistics Solution – do have of similar system p e r s p e c t i v e – m a r ke t they have the operational integrations? reputation, ex-clients capabilities? Does the proposed solution meet your business Future Proof – are they and8. Executive Engagement needs? Consider operational their solution able to grow with 8.1. 3PL present to senior management aspects such as their warehouse, you as your business grows? Is equipment, space, expertise? t h e i r s o l u t i o n s c a l a b l e a n d 8.2.E x p l o r e a n d a s s e s s Similar solutions for similar flexible? Can they meet your organisational fit customers? From the geographic future potential needs? How9. Evaluation & Selection perspective, does their logistics q u i c k l y c a n t h e y r a m p u p 9.1.Compare and Contrast – n e t w o r k p r o v i d e a d e q u a t e operations? c o m p a n y, solution, logistics services for the origins Value Add - do they have the economics and destinations within your e x p e r i e n ce , k n o w l e d g e a n d 9.2.Map shortlisted venders supply chain? expertise to help you improve to evaluation criteria Economics – how do they y o u r c o m p a n y ’s l o g i s t i c sEvaluation Criteria for r a n k f r o m t h e f i n a n c i a l activities? How do you perceives e l e c t i n g yo u r 3 P L p e r s p e c t i v e - a r e t h e y the provider in terms of industryprovider competitive on price? Are there leadership?© 2011 - 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 5
  • 6. CEO EXECUTIVE SERIES! 19 DECEMBER 2011 Services Delivery – your importance. These soft factors anecdotal consensus at a recentconfidence levels in their ability are what will determine the long logistics conference was thatto ‘deliver on the promise’ – term sustainability and success of changing your 3PL provider willexecute on their proposed your chosen service provider and take 9 to 12 months and will costsolution to deliver the their logistics solution. Careful between 15 to 25% of your annualoperational requirements and co n s i d e r a t i o n o f a l l o f t h e logistics spend!business benefits – consistently, evaluation criteria is essential to In the context of deliveringreliably and cost effectively. ensure a successful outcome. services, prior experience is aWhat are the experiences of Conclusion very powerful means to evaluateo t h e r c u s to m e r s – t h r o u g h It is critical to adopt good alternative providers – thinkanecdotal evidence and client process and use proven about restaurants, schools or hairreferences? evaluation criteria to choose your dressers. Successful ser vice When selecting a 3PL 3PL provider. The selection delivery manifests itself throughprovider it is very tempting to process is an intensive, time- the three P’s of Services - thefocus on evaluating items 2 and 3 consuming project that requires Physical results, the Processes– these ‘hard’ dimensions are specific expertise and additional and the People. In the context oftangible and relatively resources - o v er a n d a b o v e references in service businesses, Istraightfor ward to compare normal business activities – for l i ke t o u s e m y s i m p l e t w oacross multiple vendors. the duration of the project. question litmus test of customerHowever, the soft factors – the The consequences of making satisfaction: Would you buyintangibles in items 5, 6 and 7 – a mistake are significant. The a g a i n ? a n d Wo u l d yo uare of equal if not more, recommend? MARK MILLAR 马  ! email: markm@logisticsexecutive.com Mark Millar leverages over 20 years of global business experience to provide independent Consulting, Education and Advisory services that create value for clients by improving the performance of their logistics and supply chain activities in China and the Asia Pacific region. Acknowledged as an industry thought leader, clients have engaged Mark as Speaker, Moderator, Master of Ceremonies or Conference Chairman at more than 200 functions in 17 countries. His articles are regularly published by trade magazines in five languages. Mark serves on the advisory board of several leading organisations and his industry contributions have been recognised with a number of accolades, including being named in the “Whos Who of Power Players in Supply Chain Management in China", the “Pro’s-to-Know Thought Leaders in Supply Chain” and as “One of the most Progressive People in World Logistics”.© 2011 - 2012 LRS Group Pty. Ltd. All rights reserved! PAGE 6