Leading a supply chain team requires more than just management skills; it calls for true leadership. Supply chain professionals must be able to assemble, inspire and motivate their teams, set clear objectives, and navigate through short- and long-term challenges.
A strong leader can build a great supply chain organization. Here’s how.
As professionals we create supply chain strategies as part of an overall company strategy, build mitigation strategies for global supply chain risk and create commodity-based negotiation strategies. But few leaders create a specific workforce planning strategy that addresses talent related departmental goals and objectives for the next 2-3 years, or more. And that has long term impact.
This strategy should look at more than staffing needs; it should reflect the knowledge, skills, and abilities for achieving the strategy. Start with these open-ended questions. What kind of positions will be needed today and in the near future? How do we find them? What positions do we no longer need? What actions do we need to take to align resources with priorities? How do we address professional development needs to close the knowledge gaps we’ve identified? And finally, what recognition and rewards are needed to encourage, sustain, and retain employees?
It’s a candidate’s market today with demand for supply chain management positions outstripping supply, at least for now. In most cases, potential employees will not be coming to you. You will need to reach out and be creative in your search, not just relying on the massive and crowded web-based employment sites or word of mouth campaigns.
Companies searching for talent should start by developing the specific criteria for each position, being careful not to create a superhero job description that will be next to impossible to fill. Accurate and reasonable job descriptions, that convert to recruiting criteria, will not only attract competent employees but allow them to be evaluated fairly and objectively after being hired. Far too many positions lack job descriptions, reasonable goals, and objective methods for evaluation. Also, offer a competitive salary and benefit package that attracts good candidates. Trust the old adage that you often get what you pay for.
But where to find these great employees? According to a recent 2023 survey from Alcott Global, finding talent to work in the supply chain field generally is already a persistent problem. In particular, finding candidates with the right skill set has been the persistent challenge for supply chain executives.
Hiring managers will need to use their personal and professional networks, offer recruitment incentives to current staff, use executive recruiters, hire and promote from within, and carefully use social media. Also, reach out to employees who have left. Some may want to come back but lack the courage to admit they made an error in leaving. Most importantly make your business attractive to prospective hires. The conditions you create to keep employees happy will make you a better destination for new candidates.
Keep the staff that you have to minimize turnover. Respect and trust your employees, pay them well, provide job security, and create opportunities to use their skills and abilities. Retention is critical in the competitive field of supply chain management. Losing valuable talent can disrupt operations and also impact the morale of the rest of the team.
To retain skilled supply chain professionals, acknowledge and reward hard work and achievements. Simple gestures such as verbal recognition, bonuses, or promotions can go a long way in retaining top talent. Foster a healthy work-life balance. Encouraging balance and offering flexible work arrangements can prevent burnout and boost retention. Provide clear career paths and opportunities for advancement within the organization. When employees see a future within your company, they are more likely to stay and grow within it.
According to some surveys, the cost of a bad hire is at least 30% of an employee’s salary. But that’s not all. Once you begin to allow your organization to fill positions with marginal people you have begun the performance erosion process. Even in a tight labor market, you are better off leaving a position open until you find the right candidate than filling it with a marginal one. All the more reason to keep your present staff happy.
Attracting, developing, and retaining skilled supply chain professionals is a strategic imperative for leaders looking to drive innovation and manage global supply chains successfully. Professionals with expertise in analytics, communication, leadership, and a deep understanding of the global economy are essential for navigating the challenges of the modern supply chain landscape. Hire great people, pay them well, provide a path for career growth and keep them happy.
Supply chain management today relies heavily on data analytics, automation, AI, and other innovations. The upcoming generation grew up with technology and are motivated by roles that allow them to work with the latest advancements. Convey how they will get hands-on experience with tech-driven supply chain solutions.
Younger generations also want careers that make a difference. Supply chain leaders shape how products are designed, sourced, manufactured, and distributed efficiently and ethically worldwide. Stress the tangible social and environmental impact they can have through supply chain work.
Seems just so simple.