Transportation/Supply Chain Talent Shortage...Transportation/Supply Chain Talent Shortage: Turning a...
Transcript of Transportation/Supply Chain Talent Shortage...Transportation/Supply Chain Talent Shortage: Turning a...
Transportation/Supply Chain Talent Shortage:Turning a Major Problem into a Massive Opportunity
October 6, 2016, Glendale, AZSouthwest Association of Rail Shippers
Nick LittleManaging Director, Railway Management Program
Assistant Director, Executive Development ProgramsThe Eli Broad College of Business
Michigan State University517.353.5663 [email protected]
Michigan State University, 2016- 2 -
Nick Little – Background and Scope• High school thesis on freeway extension• Aspired to run the railway … but …• Joined British Rail pre-privatization from high school• On receiving end of great people development• On giving end of (great?) people development• Committed futurist• Practitioner turned quasi-academic• Problem or opportunity or both?• Observations
Michigan State University, 2016- 4 -
The Numbers• 6:1
– Demand:supply for SC people globally• $95,000
– Top MSU undergrad starting salary (++)• 48,000 increasing to 175,000
– Truck driver shortage in NA per American Trucking Assoc.• 203,000
– Number of SC Technician jobs in USA• 30% annual growth
– SC jobs requiring trained & educated people• 247k to 216k
– Rail jobs declined in last 12 months
Michigan State University, 2016- 5 -
A Major Problem
• Not enough good people to go round• 6:1 – global jobs to available, acceptable people
Source: SCTAI 2008
• Wrong skills, in wrong place, at wrong time, in wrong quantity.
• Impacts … – Costs increase– Retooling– Poaching– Rapid churn
Michigan State University, 2016- 6 -
Current Research
Michigan State University, 2016- 7 -
Insomnia
• Talent and leadership• Integrated solutions• Risk management issues
Michigan State University, 2016- 8 -
Talent and Leadership
• Talent concerns• Talent expectations• Talent acquisition and qualification• Building and retaining leaders
Michigan State University, 2016- 9 -
Representative Quotes: Talent Concern
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.
Michigan State University, 2016- 10 -
Representative Quotes: Talent Expectations
Younger employees don’t like the physically demanding nature of logistics-related jobs, and they are difficult to motivate. Our logistics centers have recruited 40 percent of its employees from the retired military. These employees are very disciplined and have significantly enhanced the morale of all employees.
Michigan State University, 2016- 11 -
Representative Quotes: Talent Acquisition and Qualification
We’ve tried to create more opportunities for people to develop by working on projects outside of their site or business unit.
We know what we have to do. We have partnerships with the top supply chain universities in the nation to keep our 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.
Michigan State University, 2016- 13 -
Illustration of Talent Management Capabilities
13
• Ability to work across organizational and firm boundaries• Ability to identify and manage value co-creation• Understand risk/reward trade-offs in the context of the
entire value chain• Ability to apply analytics to identify and evaluate potential
supply chain solutions• Cross functional and global rotations
Michigan State University, 2016- 14 -
Leadership Development Practices
• Sourcing from the military• Apply mini-promotions to provide perception of
movement• Make talent in non-hub locations feel part of the team• Partnering with universities to demonstrate path from
internship to ultimate goal• Corporate university where employees can take
credentials away• Gender and minority initiatives.
Michigan State University, 2016- 15 -
New Entrants
• Sources:– Universities– Community Colleges– High Schools– Middle Schools?
• Why follow a career in supply chain?
Michigan State University, 2016- 16 -
$60,000 $120,000$100,000$90,000$80,000$70000$45,000 $140,000 $160,000
Supply Chain IntegrationCustomer Support
Product Development
Supply Chain ManagementConnecting people to products and services across town and around the globe.
Typical Education (or equivalent experience)
SecondaryAssociate/Vocational
Undergraduate
Postgraduate Master’s
Postgraduate Doctorate
MaterialHandler
Driver Long Haul Driver
Global Trade Control & Supply Chain Security
Supply Chain Planning, Master Scheduling, Forecaster
Production & Inventory ControlShop Floor Control, Dispatch, Expedite
Warehouse Ops. Planner
Demand Planner, Buyer, Buyer/Planner, Procurement Analyst, Procurement Agent
Customer/Supplier Program Management
Management (Production Control, Distribution, Logistics)
Market, Program, & Product Development
Packaging Engineering
Ope
ratio
ns
Man
agem
ent
(Ope
ratio
nal)
Supp
ly C
hain
&Pr
ogra
m M
anag
emen
t(S
trate
gic)
Supp
ly C
hain
Pla
nnin
g(T
actic
al)
$80,000 $180,000$160,000$140,000$120,000$100,000$60,000 $200,000 $220,000
$35,000 $90,000$80,000$70,000$60,000$45,000$15,000 $100,000 $120,000
Clerk
Traffic, Transportation Planning
Logistician, Import/Export Control
Management (Logistics, Supplier & Supply Chain Management)
Director/Executive Supply Chain Management
© 2010 Supply Chain Talent Academic Initiative (SCTAI). Permission to use is granted provided copyright statement and logo are included.
Less Years Experience More
The above represents general industry data from various research sources
Michigan State University, 2016- 18 -
The Opportunity
• Exciting area to work in– Analytics– Relationships– Negotiation– Operations– Fulfillment
• No longer seen as merely the “rescue squad”
Michigan State University, 2016- 19 -
8 Reasons to Consider a Career in Logistics
1. Job availability [at all education levels]2. Annual income [BLS median $73,780/yr … $35.51/hr]3. Location and relocation4. Specialty options, competencies & industrial sectors5. Career contentment
– 89% better career opportunities– 79% happy with current job [CSCMP survey]
6. Advancement opportunities7. Entry level opportunities8. Job security [“the Amazon effect”]
Source: MHI
Michigan State University, 2016- 20 -
The New Normal
• Strategic criticality• Wide range of capabilities, competencies, skills• Education and training
– Many different solutions such as • Degrees• Certifications• Non-traditional learning• Internships• Rotational programs
• Career path no longer vertical; now more lattice-like
Michigan State University, 2016- 21 -
Conclusions• People have talent• People are your best assets• People need to grow• People like to succeed• People have more capabilities than we realize• Supply chain is the greatest place to work!