The Human Factor in Supply Chains. December 6 – 7, 2007 Rob Handfield Co-Director, SCRC Bank of America University Distinguished Progressor. Agenda. The Role of Humans in the Supply Chain Skilled and Semi-Skilled Labor Shortages Supply Chain Management – the Impending Talent Crisis
December 6 – 7, 2007
Bank of America University Distinguished Progressor
The CPO’s Strategic Agenda
“Enhancing team skills and promoting collaboration is the #1 priority for Best in Class organizations.” And they have to learn how to “sell and market to end users.”
Aberdeen Research, Nov, 2006
A Striking Correlation Between Purchasing Excellence and Financial Performance with Collaborative Skill and Behavior as the Critical Differentiator.
“The Talent Factor in Purchasing” The McKinsey QuarterlyMarch 2007
Healthy supply of skilled and unskilled labor
Stable financial markets
Long product and project life cycles with long-term resource planning initiatives
Guaranteed jobs for life
Career paths predictable and viewed as a natural progression in the company
Loyalty to company viewed as an indicator of career safety
Healthy supply of engineering and supply chain talent
Increasing use of temps to manage highly season items
Shortage of skilled and unskilled labor
Volatile financial peaks and troughs lead to unpredictable job planning
Projects curtailed at short notice – associates assigned to short-term projects and hired as consultants when required
Postponement and seasonal stocking
Unpredictable career paths
Individuals may switch jobs up to 10 times in a career
Shortage of technical skills
Shortage of supply chain talent
Humans in the Supply Chain
A New World for Talent Management
Over the next two to three years, we will need 500-600 welders. We are working with a trade school in Port Arthur Texas, and are recruiting experts to run our welding school. We run 50-60 people through schools such as pipefitting and pull them out of junior colleges.
In Texas, we pulling kids out of the hayfields who straight out of high school! They are getting 23 bucks an hour plus 65 dollars per diem on top of it
Filling the Pipeline
Source: BLS, the Kiplinger Letter vol. 84, no. 45
Capability to Deliver Value Through SCM….
…..Depends on Human Resources Available to Engage!
“Our biggest challenge is: What will we need in 5 to 7 years – and what do we need to do in 2007 that will get us where we need to be.?
Many of our executives are 50 today and we need to be able to be able to create a set of identifiable requirements tied to the roles – even at a high level – and begin to develop a strategy around these requirements.
We need to understand where we will be lacking in competencies- and begin to estimate which roles we don’t even know today we will be seeking to fill based on attrition retirements, etc.
“….succession planning requires talking candidly about what qualities are missing…..it’s sort of like a married couple trying to calmly discuss who the perfect replacement spouse would be.”
“….if senior ranks are thin, it’s because so few companies have the foresight to ask managers to take on cross-functional assignments. They let them rise to the tops of their silos – and retire.”
Thanks to Tim Cummins and Katherine Kawamoto from
IACCM for the survey posting and analysis.
BU Subject Experts
Industry-Specific Knowledge and Competencies
Supply Chain Competencies and Knowledge
Supply Chain Operations Leadership
Divison, SBU President
Source: “The Future of Supply Management: Organization and Talent, P. Carter and J. Carter,
SCM Review, November 2007.
Source: “Choose Tomorrow’s Leaders Today, Robert M. Fulmer, PhD, Pepperdine University.