Strategic HR Study of the Supply Chain Sector

1. Strategic HR Study of the Supply Chain Sector

2. Overview • In-depth national study of human resources/skills development requirements in the supply chain sector • Initiated through the Lean Logistics Technology Roadmap Research Project • Funded by the Government of Canada’s Sector Council Program

3. Canadian Logistics Skills Committee Serge Alexandre, Domtar Jim Bergeron, Lafarge Canada Inc. Don Borsk, Supply Chain Management Inc. John Chipperfield, Bellville Rodair International Tracy Clayson, In Transit Personnel Inc. Bryan Cox, Source Medical Corporation Hanaa El-Alfy, Ontario Ministry of Economic Development and Trade Darren Gorman, Transport Canada Dwayne Hihn, BAX Global Canada Frances Humphreys, Laurier School of Business & Economics Louis Joncas, Thales Avionique Canada Inc. Susan Krausz, Humber Institute of Technology & Advanced Learning Stephan Lauzon, 4L2 Consulting Group Philippe Leblanc, Metro Canada Logistics Paul Lobas, ITN Logistics Group Drake MacDonald, SMART Technologies Pierre Massicotte, L'Oréal Canada Mark Matheson, National Defence Headquarters Craig McLean, UPS Supply Chain Solutions John McMurray, Colgate-Palmolive Canada Inc. Al Norrie, SAP Canada Inc. Michel Ravacley, The Hockey Company Philippe Richer, Industry Canada Pierre Rodrigue, Gouvernement du Québec Derrick Ronayne, The Brick Warehouse LP Dale Ross, Effem Inc. – retired Deborah Shaman, HRSDC Con Taillon, United Farmers of Alberta Branko Tosic, Danex Systems Limited

4. Steering Committee – Supporting Associations • APICS - The Association for Operations Management • Association of Canadian Community Colleges • Canadian International Freight Forwarders Association • Canadian Institute of Traffic and Transportation • The Logistics Institute • Purchasing Management Association of Canada • Supply Chain & Logistics Canada

5. Objectives • To understand the importance of the supply chain sector to the Canadian economy, and the criticalrole played by a skilled workforce in the maintenance and growth of the sector • To create a common perspective of the future and to understand the existing and emerging human resource issues of the sector • To consider Canada’s role in the global industry, analyzing current and future market challenges and their impact on the domestic industry and its workforce • Occupational categories: managerial, tactical and operational supply chain occupations were studied

6. Methodology • Consultant selection • Deloitte Consulting • Secondary data analysis • Primary data collection • Foursurveys • 1,129 participants • Employers representing 110,000 supply chain employees • Interviews: 31 organizations • Focus groups: 50 employees • Industry validation roundtables • Montreal, Toronto, Calgary • Final report • Industry action plan

7. Key Research Findings • The nature of work in the sector is changing as supply chains become more complicated and strategic, and organizations try to manage the full supply chain rather than its individual parts • Technology and the resulting information management requirements are identified as key business drivers currently impacting the supply chain function and expected to maintain a presence in the future • Only 12% of employees indicate that they currently have the requisite skills to fully employ technology

8. Key Research Findings • The supply chain workforce in Canada had approximately 630,000 people in 2001 and has grown since then • Annual demand for employees is expected to be approximately 86,330 employees • Increased demand for: • Strategic business managers • Supply chain specialists • Logistics information systems positions • Supply chain-specific customer/client-focused positions

9. Key Research Findings • 66% of employers suggest that higher education with a logistics- or supply chain management-related major is essential when considering new recruits • Academic sector indicates an increased demand for supply chain training • A wide range of skills education and professional-development opportunities • No clarity as to the criteria to consider in selecting the most appropriate combination of formal education, professional development or certification

10. Key Research Findings • 58% of employers are having difficulty finding people with the required skills • Students have limited or no knowledge of most if the current supply chain functions and career opportunities • Only 9.7% have full knowledge of warehousing and logistics information functions and career opportunities • Only 11% of firms are involved in career awareness activities • Relatively few employers had recently implemented any initiatives specifically targeted at attracting and/or retaining supply chain employees

11. Key Recommendations • Nationally focused integrating mechanism/ sector council must be established: • To explore common concerns related to human resource development, and identify possible solutions and implement them • To identify the current and future requirements for human resource development that will enable the sector to become more globally competitive • To improve the quality of the Canadian supply chain labour force, and to assist firms to be more flexible in meeting changing competitive demands

12. Key Recommendations • Create an information repository of post-secondary academic programs and industry associations’ certifications and career option information • Developa marketing strategy to provide web-based access and promotion for learners and career changers • Encourage more effective co-ordination between post-secondary academic institutions and industry • Better educate and promote the sector to those making career and education decisions

13. Next Steps • Formation of the Canadian Supply Chain Sector Council • Establishment of a national representative Board of Directors • Implementation of the study action plan • Continued support by sector members on various project steering committees

14. Access to Final Report Visit www.logistics-skills.org Contact CLSC: • 416-648-3413 • coordinator@logistics-skills.org