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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
Logisticservices,concepts&tools
Productlifecycle
Futurechallenges,latestdevelopments
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].

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2016 Defence Procurement Summit Chairmans Keynote Presentation

  • 1.
  • 2. Simply the Best "Building effective, efficient procurement talent"
  • 3. 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.
  • 4. 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
  • 5. Why?  Technology  Increasing demand  Expanding demographic void  Rapidly evolving “skillset” requirements  Potential shortfalls in academia  Negative bias towards the logistics “image”
  • 6. The perfect storm? Source: Mehta, A. (2015)
  • 7. Technology versus employee capacity  Legacy employees  Evolution of Log IS  The cost of human error  CPD?
  • 8. 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
  • 9. 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
  • 10. The talent gap 29% 61% 10% Source: Supply Chain Insights LLC, 2014. Entry Level Middle Management Level Executive Level
  • 11. 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
  • 12. Rapidly evolving “skillset” requirements  Supply chain managers – growth of role
  • 14. Rapidly evolving “skillset” requirements  Supply chain managers – growth of role  Competencies  Broader qualifications required  Multiple skillsets  A developing environment
  • 15. 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
  • 16. Negative bias toward the logistics “image”  Lack of understanding  Not a “career path”  Inadequate educational programs  Attracting the “young”  Change sensitive
  • 17. 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”
  • 18. Liaison with the logistics industry  Must be proactive  Collaboration  A learning platform  Academic programs must understand the industry requirements
  • 19. 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 Logisticservices,concepts&tools Productlifecycle Futurechallenges,latestdevelopments
  • 20. Liaison with the logistics industry  Must be proactive  Collaboration  A learning platform  Academic programs must understand the industry requirements
  • 21. 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?
  • 22. Education by employer CEO: “What if we train our employees and they leave?” COO: “What if we don’t and they stay?”
  • 23. 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
  • 24. 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
  • 25. Become an “employer of choice”  Industry commitment required  Incentivize employees  Formualised career path  Remuneration  Work/life balance  Driven from the top down
  • 26. The alternatives  Is there an alternative?  There is no choice
  • 29. 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].