Millennials are breaking stereotypes across the industry. This new generation is bringing youth, better education, and lots of diversity to supply chain management.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
Everyone knows that the demographics of the Supply Chain industry are changing. They have to. Within a few years, demographers estimate that 400,000 baby boomers will be retiring in Canada every year. Within the Supply Chain industry, the looming – and in fact, already-started – retirement of baby boomers and shifting job responsibilities brought about by technology are creating a talent crisis.
It’s something that we’ve covered extensively at Argentus. We’ve written about how the industry can fill the burgeoning gap in talent: by increasing educational opportunity, doing more outreach to young people, and improving communication about the vast career potential in the field – a field that until recently was stereotyped as transactional, hidebound and, in a word, boring.
Today’s Supply Chain professionals know that – especially at the highest levels – the field is anything but. And it looks like some of these efforts to avert the talent crisis have begun to bear fruit: a major new surveyshows that millennials are moving into the workforce in a big way, changing its Supply Chain’s demographics and disrupting the industry.
The survey, conducted by Peerless Research Group, Supply Chain Management Review, APICS and APQC surveyed 676 millennials (between the ages of 22 and 37) in April 2017 to find out about their demographics, expectations, goals and current career status within the Supply Chain industry. It’s a far-reaching report with a lot of results busting down stereotypes both about Supply Chain and millennials themselves.
As a recruitment company specializing in Supply Chain and Procurement, Argentus sits at the nexus of a lot of these demographic changes. Needless to say, we read the report with great interest. Here were some of our biggest, and most surprising, takeaways.
Takeaways from Apix survey on millennials in supply chain.
Careers are becoming more intentional:
When we speak with SCM professionals from the baby boomer and Gen X generations, it’s really common for us to hear, “I didn’t plan on going into Supply Chain, but I fell into it.” But this tendency is changing. The report found that 75% of millennials in Supply Chain jobs intentionally began their careers within the field.
Planning and Procurement are taking on a bigger role in the field: 22% of millennials surveyed are working in Planning and 21% in Procurement, compared to 15% in Logistics, 11% in Inventory Management, and 9% in Manufacturing.
Supposed “Job Hoppers” are actually staying put:
We’re maybe a ways past the 2008-2014 heyday of stereotyping millennials in the workforce. Companies are realizing millennials’ huge value as employees. With that in mind, the report still dispels some classic stereotypes about millennials in the workforce. There’s a perception that millennials are “job hoppers” who don’t have loyalty to their employers, but the survey found that 38% of millennial respondents have worked for just one employer their entire career. 65% had worked for their current employer for more than 5 years.
Educational opportunities are taking off:
One of the biggest growth areas in the field is the increasing prevalence of educational opportunities as more universities and colleges bring SCM programs online. 66% of the millennials surveyed have either undergraduate or graduate degrees in Supply Chain or Logistics. APICS conducted a similar survey in 2016 – this time of senior leaders in the field – and found that only 19% of the leaders surveyed had degrees in the field, which suggests that millennials are taking advantage of these increased educational opportunities.
59% of the millennial supply chain employees surveyed have a bachelor’s degree of some kind, even if it’s not in Supply Chain or Logistics. The 2016 leadership survey found that only 45% of Supply Chain leaders had degrees. It’s worth mentioning that more companies are requiring degrees these days for sole contributor roles, so this might be a response to that market pressure.
Millennials are interested in continuing education in the field, suggesting it’s not just a fly-by-night career for them. 65% of the survey respondents indicated that they were planning on pursuing further education in the next 12 months.
The gender gap is chainging, but persistent:
More women are entering the Supply Chain field. 61% of the survey respondents were men, whereas 39% were women. It’s still not as close to even as it should be, but the breakdown was more evenly split than APICS 2016 leadership survey mentioned above: in that survey of Supply Chain leadership, 76% of respondents were male and only 24% were female. This indicates that more millennial women are entering the field than their Gen X and baby boomer counterparts. It also indicates that, as we’ve written about before, more needs to be done to bring women into Supply Chain leadership
There’s still a stubborn gender pay gap in the field, even for millennial employees. The average compensation for male respondents was $92,920, while it was only $78,840 for women in the cohort. The survey found that men and women generally start off with equitable compensation, but the gap grows – as it does in many other fields – as they move up into more senior roles.
Millennials expressing a high degree of career satisfaction:
On the job satisfaction front, there were some absolutely massive numbers that speak to the way the field is becoming more flexible and dynamic: 85% of millennials surveyed said that they were likely to be still working in Supply Chain in 5 years. 81% said they felt as if they could make a difference in the Supply Chain field. 85% said they agreed that the field was a diverse workforce, and 87% said that they thought working in the field would help with personal growth and development.
It’s exciting to see the way the field is growing and adapting to change, and the way that millennials are stepping up and reaping some of this career’s rewards. We encourage you to check out the full report. There’s a lot to dig into beyond the takeaways we’ve identified here – lots of insights that will be interesting to anyone who’s interested in the way Supply Chain careers are taking off in the 21st century.
Millennial talent seeks employment opportunities with companies that promote transparency, technology, excellence, and social change.
We write often about the supply chain talent gap and how supply chain companies should be proactively recruiting millennials to join their companies. So a recent Harvard Business Review article, which talks about how companies that “young people find dull” (like electrical distributors and manufacturers) can make their businesses seem “cool,” seemed particularly relevant.
While we adamantly disagree that the supply chain isn’t cool, we do think it’s important that logistics and supply chain companies think strategically about recruiting millennial talent.
Millennial talent and the vision thing
According to a new study by strategy firm Department26, “Transparency is the millennial standard operating procedure in the workplace.” Honesty and security are top of mind for this generation that came of age just as the country plunged into The Great Recession.
Beer kegs and ping pong are nice, but millennials are more impressed with leadership that sets goals and delivers on them. They want to know how their role contributes to the organization’s success, and they want to know the effort they’re putting into a job is worth it.
“Setting them up for success means regular check-ins, both positive and constructive feedback as a rule, and structured mentorship,” write the authors of the Department26 study.
People say millennial talent doesn’t work for money, and it’s true that they’re not motivated by salary alone. Younger employees want meaningful work that enhances their personal growth.
They also want flexible work rules that show an employer respects and trusts them. Sharing details of your strategic plan or examples of how your HR policies reward personal initiative can help millennial talent see your “boring” business in a new way.
“The thought of not being granted flexibility in exchange for hitting performance metrics is absurd to millennials, and it’s a concept that’s diametrically opposed to the freedom they crave,” the study concludes.
Talk tech
Logistics or trucking can sound dull to the iPhone generation — until you paint a picture of forward momentum and innovation that might surprise them.
Automation, robotics, autonomous vehicles, blockchain, drones and the Internet of Things (IoT) are reshaping the industry. Companies like Amazon, Pfizer and Wal-Mart are experimenting with new technologies to reduce costs, boost productivity, and improve handling performance.
“Wearable technology could soon become a standard must-have in the logistics industry,” according to a recent story in The Business Journals. “As these technologies continue to carve out their role in the global logistics industry, we’re likely to see previously unimagined levels of optimization — from manufacturing to warehousing to delivery.”
Find ways to change hearts and minds by exposing young people to the realities of today’s supply chain. If they think it’s boring, it’s because they really don’t know what it is.
Be the best damn supply chain company anywhere
People want to work for “the best” — the most innovative, the most profitable, or the most admired brand — in every industry. Workers are proud to say they work for a company recognized as being the best at what it does because it says they’re the best, too.
Even millennial talent that has never thought about a career in logistics might reconsider if they’re being recruited by an industry leader.
Celebrate excellence at your company. Promote the awards you’ve won. Share customer testimonials, positive media coverage, and community recognition with prospective recruits.
It also helps to do well by doing good. This is a generation that trusts business, not government, to create positive social change. “Millennials are hungry for a work culture that inspires them. At a macro level, companies should communicate clear plans that reflect their core values,” says Department26.
HBR author Bill Taylor summarizes these sentiments well: “What [millennials] value is the chance to join companies that make a difference and where the work brings out the best in them.”
Use these 5 strategies to overcome the supply chain talent gap, filling critical positions with qualified hires and streamlining processes for future talent.
The U.S. Bureau of Labor Statistics projects the number of supply chain management and logistics jobs will increase 26% from 2010 to 2020. That means, in the near future, for every five to 10 job openings, there is one qualified applicant. These are the kind of odds you hope for in Vegas, but not if you’re looking to fill positions, and quickly.
It’s no secret — the supply chain is experiencing a major talent gap. In fact, in a recent DHL survey nearly 70% of survey respondents list “perceived lack of opportunity for career growth” and “perceived status of supply chain as a profession” as having a high or very high impact on their ability to find, attract, and retain talent. What’s even more interesting is that one-third of supply chain and logistics companies have taken zero steps to create or feed their future talent pipeline. Don’t be one of those companies!
Let’s face it: Many don’t perceive supply chain and logistics as a sexy profession. But there are real benefits for people that get into the industry. Cutting-edge technology, career growth, and environmental impact are just the tip of the iceberg. There are ways to showcase all the industry has to offer, giving you qualified hiring options and helping manage processes for future talent.
These five strategies will not only help you start hiring supply chain talent quickly, but will also help you implement processes for prospective positions.
5 strategies for overcoming the supply chain talent gap
The supply chain talent shortage is a hurdle, but not a deterrent. Companies need to step up their game when it comes to finding and retaining qualified candidates. Along with these strategies, highlighting your brand’s unique value and culture will make it stand out as an exciting place to work.
How is your company combating the supply chain talent gap?
With the rising demand for professionals in Supply Chain Management and Procurement, there’s a lot of employment activity, especially in short-term contracts.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
As a boutique recruitment agency, we at Argentus are on the front-lines of the churn in the job market. We speak with potential job candidates every day. Some of them are passive, interested in moving into new opportunities when we reach out to them. Some of them are active, reaching out to us because they want to make a move. With the economy experiencing a prolonged growth spurt, and demand for professionals in Supply Chain Management and Procurement – our area of specialty – going up, there’s a lot of activity, especially in short-term contracts where companies are onboarding talent for their change management and business transformation expertise.
There are so many reasons why people seek out a new job. Sometimes it’s based on major life changes: a geographical move, say, or someone getting back into the workforce after a maternity leave. But why do passive candidates seek out new jobs, particularly in Supply Chain and Procurement?
We speak to a lot of candidates, so we have our ears to the ground in terms of the subtler reasons that star performers in these functions get the desire to make a move. It’s not out of a desire for more money as often as you might think. More often than not, it’s the more intangible factors.
Because employee retention is so important from a cost-saving and culture standpoint, we thought it would be useful to lay out some of the most common reasons why Supply Chain and Procurement professionals become passive candidates:
1. They’re siloed
We hear this reason a lot from candidates, but it still isn’t considered by companies as much as it should be. We know that one of the best ways to grow your Supply Chain career is to gain exposure to diverse parts of the function – from Logistics and Distribution, to Procurement, to Inventory Management, to Planning.
In too many organizations, these functions are siloed off from each-other, and that stops candidates from getting the experience they want to move up into more senior roles. It also stops the Supply Chain from being as effective as it would be if it was fully integrated. Next thing you know, your top performers are taking calls because they don’t want to be pigeonholed.
2. They’re tired of working with outdated technology
Supply Chain and Procurement technology is becoming more digital, just like the rest of the economy. And updating your technological profile can be a massive undertaking, with lots of risks. But the most forward-looking and high-potential candidates want to be working with the latest Supply Chain technology, keeping their skills relevant for the future. If you’re still working only with Excel, you might risk losing candidates to companies that have taken the plunge and invested in continuing technological improvement.
3. They’re not getting support from senior leadership
As we wrote about recently – and we received a ton of feedback on that piece – ineffective leadership in Procurement and Supply Chain can have huge ramifications all the way down a business. If leadership doesn’t have the people skills to help build buy-in for the function across the business, if they micromanage instead of letting managers and sole contributors shine, those people are going to start picking up the phone when a recruiter calls. But it goes upward too: effective leaders in Procurement and Supply Chain will get the itch to move if they don’t have support from C-level executives in a business.
4. Work/life balance isn’t up to snuff
Work/life balance is a hot topic in the talent world, to the point of being a cliché, but it’s worth mentioning: people who don’t have support from a work/life balance perspective will start to seek companies that have work from home policies, flexible schedules, educational opportunities, and other benefits. In 2018, companies can no longer see these programs as “perks” or “throw-ins.” Having solid, articulated work/life balance policies is vital to winning the war for talent.
5. They’re uninspired in the workplace
While Supply Chain and Procurement have historically been seen as “dry” functions, this reputation is changing fast. With the rise of digitization and globalization, they’re becoming more fast-paced, with more strategic potential and impact on a business’ long-term structure and profitability. But some companies still treat their Supply Chain and Procurement employees as purely transactional workers whose jobs are only to fill out orders and put out day-to-day fires. If you’re not being strategic, or not offering opportunities for advancement into more strategic positions, your best Supply Chain employees will, quite frankly, get bored and leave.
6. They’re realizing how indemand they are
As we’ve written about a lot, the retirement of the baby boomer generation as well as greater expectations placed on Procurement and Supply Chain are creating a deficit of talent in the marketplace. With the economy approaching full employment in 2018, this is even truer than it was before. But many companies still aren’t realizing the huge demand for Supply Chain and Procurement talent in this marketplace. Too many companies still have assume their employees are “just happy to have a job,” but take it from us as a company that speaks with dozens of candidates in the field every day: they’re realizing their worth, and fielding opportunities to meet their full potential. If your company isn’t providing those opportunities, they’ll go somewhere that does.
Sometimes it’s a combination of the above factors that causes a top performer to want to leave, and sometimes it’s even other factors we haven’t mentioned. So what does your organization do to retain star performers? As a candidate, have you ever left a role for one of the above reasons, or another that we missed? Let us know in the comments!
In the wake of the supply chain talent gap, try these strategies to fill critical positions with qualified employees and to create a pipeline of future talent.
It’s no secret — the supply chain is experiencing a major talent gap. In fact, according to Supply Chain Insights, 60% of companies within the supply chain industry have job openings, and 51% of companies are seeing an increase in turnover of supply chain leaders. So what can you do to overcome the talent shortage?
These five strategies can help companies feeling the strain of the supply chain talent gap.
5 strategies for overcoming the supply chain talent gap
1) Partner with universities and educational programs.
In an interview with Fronetics, SCM Talent Group founder Rodney Apple suggested that companies looking to attract top talent should “partner with supply chain universities and proactively recruit students from these universities, early and often.”
As more and more universities are offering supply chain degrees, these schools are a prime recruiting ground for highly qualified candidates for entry-level positions. This means “proactively reaching out to universities in the region and even nationally that match up with people in the workforce,” says Apple.
2) Be open-minded in your hiring.
A recent Google study has yielded what might be a surprising result that points to the importance of open-mindedness in hiring practices. While conventional wisdom suggests that recruiters should be focusing on STEM capabilities, it turns out that “soft skills” are often a more accurate predictor of innovation and success.
In the same vein, it’s increasingly being suggested that liberal arts grads could play an important role in the future of the supply chain. These majors emphasize the kind of critical-thinking skills that are crucial for future leadership potential.
3) Promote from within — from the manufacturing floor and beyond.
When looking to fill higher level positions, you may be overlooking a tremendously important resource: your own people. Promoting from within has several obvious advantages. Firstly, there’s institutional knowledge and trust built in — you already have relationships in place.
Promoting from within means that you’ll be placing people in higher level positions who understand the particular intricacies of your operations. This, in turn, means you save valuable time on training and eliminate what could otherwise be a steep learning curve.
4) Invest in talent acquisition.
Talent acquisition can quite literally shape the future of your company, and it’s crucial that you make it a priority. This often means working with a recruiting firm, particularly one that specializes in the supply chain.
In addition to partnering with supply chain universities, Apple suggests that companies “invest more into job training and mentoring programs, like supply chain certifications and tuition reimbursement.”
While the shortage of supply chain talent is often attributed to a skills gap, there’s a more fundamental problem: The supply chain just isn’t perceived as sexy.
“Perceptions need to change — fast,” writes Fronetics CEO and Founder Frank Cavallaro. While it won’t necessarily be easy, “convincing the public — young and old — that the manufacturing industry really is undergoing a renaissance” is ultimately the most lasting fix to combat the supply chain talent gap.
Placing the spotlight on new technologies like 3-D printing, robotics, and advanced analytics should demonstrate that the supply chain is a place for creativity, critical thinking, and fulfilling careers.
How is your company combating the supply chain talent gap?
Logistics and supply chain careers are increasingly high paying, diverse, and in demand.
With the talent gap growing wider every day, ambitious current and future supply chain professionals have many interesting opportunities. And not only that — Logistics and supply chain careers are increasingly high paying, according to LinkedIn’s State of Salary Report 2017.
According to Rob Byrne of Logistics Bureau, “Through its extensive span of activities, the supply chain sector offers wide-ranging possibilities for employment and career progression. The variety of functions involved — product design, procurement, warehousing, production, transport, distribution, sales, for instance — encourage demand for new employees.”
Here’s a look at five of the top logistics and supply chain careers available to today’s professionals.
Top 5 logistics and supply chain careers
1) Customer Satisfaction Director
Automation and analytics are taking over in fulfillment centers, and the options for building a load, planning a route, and confirming shipments are extending. Forbes contributor Kevin O’Marah writes, “Customer contact at the point of delivery may be your best chance to make a great impression and renew the business.”
The industry once thought of the customer satisfaction director as a “logistics manager.” But as technology revolutionizes the sector, this role has — and will continue to — evolve.
2) Distribution Center Supervisor
These are professionals who administer all the daily activities of a distribution center. They manage expenses, minimize losses, and are responsible for ensuring that goods are sent to buyers at the right time. This role requires juggling complicated tasks to keep processes running smoothly.
3) Procurement Manager
Procurement managers are responsible for finding the most competitive prices to buy goods for their company. If you have excellent communication and negotiation skills, love working with numbers, and are adept at establishing professional networks, this could be a great career option for you.
4) Demand Planning Analyst
As a demand planning analyst, you would be responsible for analyzing your company’s inventory and billing processes, managing stock levels, and purchasing goods. If you’re someone who enjoys quantitative analysis, this is a fulfilling option.
5) Supply Chain Consultant
Supply chain consultants provide a third-party perspective to companies regarding vendor and inventory management, or any aspects of their supply chain and logistics activities. This is a great option for seasoned supply chain professionals looking for a career shift, as experience is a plus when it comes to consulting.
These logistics and supply chain careers represent just five of the many exciting options available to professionals these days. What career paths do you find most exciting/fulfilling/promising?
