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How to hire Talent during the looming Supply Chain Talent Crisis

Posted by SCOPE Recruiting on Aug 3, 2017 6:09:00 AM

The demand for supply chain professional exceeding supply could reach as high as 9:1 by 2020. Companies need to utilize new technologies and prepare the next generation to succeed in a rapidly changing industry according to a DHL survey.The report ‘The Supply Chain Talent Shortage: From Gap to Crisis’ was commissioned by DHL and authored by Lisa Harrington, president of the lharrington group LLC.

"Leading companies understand that their supply chains – and the people who run them – are essential to their ability to grow profitably," observed report author Lisa Harrington. "However the task of finding people with the right skillsets required to run these highly complex operations is increasingly difficult – especially at the middle and upper management levels."

Today, the ideal employee has both tactical/ operational expertise and professional competencies such as analytical skills. Some 58% of companies’ said this combination is hard to find. But tomorrow’s talent must also excel at leadership, strategic thinking, innovation, and high-level analytic and technological capabilities.

In addition to an changing skill requirements, her study says other reasons for the personnel shortage includes an aging workforce and a lack of personnel development. One third of companies surveyed have taken no steps to create or feed their future talent pipeline. 

"We recommend that companies start with prioritizing the development of their current talent pool to adapt to the changing job requirements through training programs, and then retaining staff through clear career paths," noted Louise Gennis, DHL Supply Chain vice president for Talent Management/Acquisition, Learning & Development.

The industry is still contending with the impression that other fields are more prestigious and offer more opportunities, fueling lack of interest in the industry within the world’s future workforce.

Harrington added: "We strive to combat misconceptions surrounding working in the supply chain through highlighting the technological developments which are digitizing the industry and that are attractive to younger demographics," 

"New technologies and fundamental areas of the supply chain have changed, meaning [companies] now require that a person has a different and much larger skillset than required when most of the current workforce began their careers." she continued. 


In our recent blog post "Why work with Procurement Recruiters" we highlight the advantages that come from working with specialized supply chain recruiters.  

 

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Topics: Industry Trends

How to find the Procurement talent that can drive your Business

Posted by SCOPE Recruiting on May 23, 2017 9:11:00 AM

In our recent post “Is there a talent deficit in the Procurement field?”, we addressed the findings from Deloitte that 62% of CPOs do not believe their teams have the skills and capabilities to deliver their procurement strategies, and some of the potential reasons behind their beliefs.

Given this talent deficit facing the Procurement field currently, how can CPOs and organizations find the talent they need to drive their businesses forward?


  1. Utilize outside training to educate the talent you do have. Deloitte found that less than 30% of CPOs are allotting more than 1% of their operating budgets to training. Consider getting your employees certified through reputable agencies such as the Institute of Supply Management (ISM), Council of Supply Chain Management Professionals (CSCMP), or APICS.
  1. Develop a robust internal training program. Look to past winners of the Procurement Leaders “Learning & Development Award” such as Delphi Automotive, Roche, and ABB for inspiration. Delphi, for example, promotes a culture of deep learning through Delphi University “which offers courses in all aspects of Supply Chain Management, [it] is a catalyst for knowledge creation and dissemination. A wide variety of courses are available to SCM employees globally, and it’s one way we instill a culture of deep learning and innovation in our teams.”
  1. Forge partnerships with leading universities for entry-level talent needs. Align with universities like Michigan State, Penn State, MIT, University of Tennessee, and other universities paving the way in Supply Chain education. The creation of Leadership and Management trainee programs is not only attractive to upcoming graduates, but promotes stronger retention among new-hires and builds robust succession plans.
  1. Look outside of your Supply Chain for talent. Deloitte’s study found that 2/3 of CPOs within the manufacturing industry specifically identify training their teams on technical procurement skills as a priority.  Look internally at commodity specific subject matter experts and engineers to fill a technical procurement need you may have, or look to outsource your Procurement through a 3rd party sourcing firm that has strong technical expertise in an area you require.
  1. Create a strong value proposition for candidates to join your organization. Given the shortage of qualified talent within the industry, high caliber candidates have the luxury of being selective. A strong value proposition could include robust employee development plans, competitive compensation and benefits, and various perks and incentives to boost morale and improve the culture.
  1. Utilize a Procurement focused recruiting organization. Given the talent shortage, most high performing candidates are passive job seekers that you will not find through standard job postings. Using a specialized recruiting team with industry knowledge (whether internal or external) will allow you to tap into their vast networks and experience to engage with top-tier talent meeting your criteria.

While each of these 6 areas may come at an expense, every CPO knows the monetary value a highly talented individual can bring to a Procurement organization. With increasing pressure to deliver year over year savings, lead time reductions, process improvements, and technology initiatives, the demand for high caliber Procurement professionals is only increasing. How is your organization building their capabilities to manage this trend?

Topics: Industry Trends

Why is there a talent deficit in the Procurement field?

Posted by SCOPE Recruiting on May 18, 2017 3:11:00 PM

During Deloitte’s global CPO survey in 2016, they polled 324 senior procurement leaders representing $4.4 trillion dollars in global spend. They asked questions regarding the talent gap, and shockingly “62% of CPOs do not believe their team has the skills and capabilities to deliver their procurement strategy.

What has changed in the industry, that CPOs do not feel their teams are up to job at hand?

  1. The traditional procurement function is evolving. With the ability to outsource and automate everything from requisition to requisition to payment management, many traditional procurement roles are being removed from the equation. Organizations are now looking to their Procurement teams to act as critical thinkers, influence business decisions in the use of 3rd party activities, and focus on innovation. This trend is not expected to change, with 19% of CPOs in the Americas planning to increase the level of outsourcing within their procurement functions over the next year. 
  1. 20 years ago, it was rare to find someone in Purchasing who sought out that field as one to pursue. Now, across many Universities you have robust Supply Chain Management programs. Unfortunately, the number of education professionals does not yet match the requirements of the growing industry.
  1. Talent is not being invested in. The Deloitte survey also found that 30% of CPOs spent less than 1% of their operating budgets on training their current employees. With the rapidness of changes within the industry, talent should be invested in now more than ever.
  1. Digital capabilities like cognitive analytics, e-sourcing tools, supplier relationship management tools, auto contract metadata capture, and more are growing increasingly important for organizations to stay current and agile in the Procurement industry. 82% of CPOs say their organizations have started their digital supply chain journey. With new technology coming out every day, often the current talent is not trained or familiar with these new tools.
  1. There is a demand and supply imbalance. The U.S. Bureau of Labor reported that logistics jobs are expected to grow 26% by 2020. Coupled with 60 million Baby Boomers retiring by 2025, Procurement is an area being affected like many others across the US.

Given the talent gap at hand, organizations need to find ways to recruit and retain top-tier talent within the Procurement industry. Follow along as we dive into ways organizations can do just this in our next blog post. 

To view the Deloitte study referenced, click here.


 

Topics: Industry Trends

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