by Jennifer Hart Yim | Sep 25, 2019 | Blog, Leadership, Strategy, Supply Chain, Talent
New research shows Gen X business leaders are being promoted slower than their millennial and boomer counterparts. This Gen X talent looking to jump ship.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
Much attention has been given to millennial employees over the years –what attracts them, what causes them to stay in a role, how to manage them differently than other generations of employees. It was a hot topic of discussion at the recent SCMA National Conference. At the same time, more baby boomers are beginning to retire. These two generations represent the back and front end of the Supply Chain industry’s talent pipeline, and they’ve been the industry’s focus. But of course, the demographic picture is broader and more nuanced than just these two generations.
Last week, we wrote an article about the importance of the emerging Generation Z – people born between 1997 or so and the 2010s – to companies seeking to win the war for Supply Chain talent. Hopefully, it helped fill in the generational picture even further.
Now a recent, very interesting article in Harvard Business Review has us wondering – are Gen X employees being forgotten by the industry? If so, what’s the impact on their careers, as well as organizations who employ them – the companies who stand to lose if dissatisfied Gen X’ers begin to jump ship?
At the risk of explaining the obvious, Gen X’ers are generally defined as being born between the mid-1960s and early 1980s – after baby boomers, but before millennials. They also came of age with a reputation for being “unambitious” – a reputation that’s just as outdated as some of the most famous slacker movies (classic though those movies may be).
As we said with our article about Gen Z, these generational distinctions are a bit fraught. Career motivations are different for every person. They’re too complex to paint everyone with the same brush. But when you can marshal enough data, you can start to learn some interesting high-level things about the hopes, dreams, and discontents of a particular demographic. In 2018, HBR worked with EY and The Conference Board to collect and analyze data from some 25,000 business leaders. Those surveyed were from all over the business landscape, but there’s data here that will be useful for Supply Chain organizations looking in the mirror.
Some of the results related to Gen X in the workplace were very interesting, in particular:
- The majority of Gen X leaders (66%) had either not been promoted in the past 5 years, or had only been promoted once.
- Baby Boomer and Millennial leaders were more likely to receive promotions (58% and 52% respectively). This is unsurprising for the boomer generation, but it is surprising that a generation younger than Gen X seems to be getting promoted more. It suggests Gen X employees are being “skipped” compared to their counterparts.
- The data found that Gen X employees are promoted typically 20%-30% slower than millennials are.
- Generally speaking, Gen X managers have more direct reports than millennial managers at the same level, indicating a higher workload.
This is the situation on the ground for Gen X talent and leaders. But how are they responding to this lack of advancement?
Gen X employees tend to be more loyal to their current employers, with 37% contemplating leaving their current role compared to 42% for millennials. They came of age before the 2008 financial crisis, in a time before the rise of the gig economy, which might account for their willingness to spend longer in a role.
But companies shouldn’t mistake this loyalty for complacency: according to the data, only 58% of Gen X employees feel that their careers are advancing at a good rate, which is significantly lower than the 65% of millennials who feel the same way. Almost one in five Gen X leaders surveyed reported an increased desire to leave their current role (18%).
Many organizations are beginning to reckon with the retirement of the baby boomer generation. They’re trying to attract and retain millennial talent by improving opportunities for career growth. Maybe they should also be doing more to nurture Gen X talent, to avoid losing that all-important middle group within the talent landscape.
As Stephanie Neal, the HBR writer puts it, a significant number of Gen X’ers might be reaching a “breaking point in” their careers. But she identified some key strategies for companies to avoid neglecting Gen X talent:
- Invest not only in continuing education for employees, but personalize it. Most Gen X employees have developed a broad base of skills, but individual needs and desires vary. Organizations should tailor their talent development to each person. Stay interviews, which we’ve written about recently, are a good strategy to better understand what motivates each individual in your organization.
- Give Gen X leaders opportunity for mentorship, and not just within the organization. We also recently wrote about the power of mentorship in a Supply Chain career, so we were happy to see HBR highlight the importance of mentorship as well. According to the research, a majority of Gen X leaders craved mentorship outside their organizations, which is enabled by things like industry conferences and professional groups. Investment in these opportunities not only helps with retaining Gen X leaders, it also offers chances to expand your supplier network or find new business.
- Hire and promote based on data, rather than gut feelings. Hiring managers often work hard to try to eliminate unconscious bias from the hiring process, but ageism often goes under the radar. Applying stereotypes to a certain cohort introduces bias that harms your process and leads to dissatisfaction. Neal uses the example of assuming that a millennial would be better at a digital marketing role than a Gen X employee. Decisions based on data such as assessments and quantifiable achievements will always be more successful than those based on stereotypes.
It’s a good start, but maybe this is issue deserves an even closer look. If we may add another tip: avoid stereotypes. Data surveying the preferences and mindsets of a large group of people can be instructive, but don’t assume that every Gen X employee is wired the same way.
What do you think? Are there any specific talent retention strategies for individuals in the Gen X cohort? Are you of this generation, and if so, how do you feel about your career prospects? We’d love to hear from you.
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by Elizabeth Hines | Sep 17, 2019 | Big Data, Blog, Data/Analytics, Internet of Things, Robotics & Automation, Supply Chain
Machine learning is shaping the future of supply chain and logistics management, improving accuracy, speed, scale, and more. Here’s how.
Highlights:
- Machine learning refers to an application of artificial intelligence that lets systems learn and improve automatically based on experience.
- Experts predict that 95% of supply chain planning vendors will rely on supervised and unsupervised machine learning for their solutions by 2020.
- When paired with the Internet of Things, machine learning can provide cost savings around $6 million per year.
When it comes to the future of the supply chain, machine learning is one of the most exciting applications of artificial intelligence (AI) technology out there today. Machine learning is a mode of data analysis that provides systems with the ability to learn and improve automatically from experience, without being specifically programmed.
Gartner recently projected that by 2020, 95% of supply chain planning vendors will rely on supervised and unsupervised machine learning for their solutions. Furthermore, it isn’t just expert predictions that demonstrate the impact and potential of machine learning for the supply chain. Amazon, for example, is using machine learning to improve accuracy, speed, and scale for its Kiva robotics, and DHL relies on machine learning to power its Predictive Network Management system.
So, what is it about machine learning that makes it ideally suited to meet the challenges commonly faced by supply chain companies? The answer lies in the fact that machine learning algorithms are brilliant at detecting patterns, anomalies, and predictive insights. This makes it the ideal technology to help supply chain companies forecast error rates, reduce costs, improve demand planning productivity, and increase on-time shipments.
Here’s how these remarkable technologies are already revolutionizing supply chain management.
7 ways machine learning is improving supply chain management
1) Logistic solutions
Particularly when it comes to resource scheduling systems, machine learning algorithms are driving the next generation of logistics technologies. An April 2019 report from McKinsey predicts that “machine learning’s most significant contributions will be in providing supply chain operators with more significant insights into how supply chain performance can be improved, anticipating anomalies in logistics costs and performance before they occur.”
2) Internet of Things
The Internet of Things (IoT)’s sensors, intelligent transport systems, and traffic data generate a tremendous variation in data sets. Machine learning has the potential to deliver increased value by analyzing these data sets, thereby optimizing logistics and ensuring that materials arrive timely.
Additionally, machine learning can reduce logistics costs by uncovering patterns in track-and-trace data captured through IoT-enabled sensors. A December 2018 study by Boston Consulting Group determined that pairing machine learning (specifically Blockchain) with the IoT can contribute to cost savings of $6 million per year.
3) Preventing privileged credential abuse
A recent article in Forbes points to privileged credential abuse as “the leading cause of security breaches across global supply chains.” Machine learning can prevent these abuses by verifying the identity of anyone requesting access, as well as the context of the request and, most importantly, the risk associated with the access environment.
4) Reducing fraud potential
In addition to reducing risk and improving product and process quality, machine learning can reduce the potential for fraud in the supply chain. For example, machine learning startup Inspectorio is a solution to the problems “that a lack of inspection and supply chain visibility creates, focusing on how they can solve them immediately for brands and retailers.” Their algorithm provides insights that instantaneously reduce the risk of fraud.
5) Reducing forecast errors
According to a recent report from Digital/McKinsey, “Lost sales due to products not being available are being reduced up to 65% through the use of machine learning-based planning and optimization techniques.” The same report observes that “inventory reductions of 20 to 50% are being achieved today when machine learning-based supply chain management systems are used.”
6) Detecting inconsistent supplier quality levels
Machine learning can help manufacturers combat one of the biggest problems they face today, namely a lack of consistent quality and delivery performance from suppliers. These technologies can quickly detect and address errors, as well as determine highest and lowest performing suppliers.
7) Preventative maintenance
Preventative maintenance is a tremendous strategic asset for the supply chain. And, when paired with machine learning, it “allows for better prediction and avoidance of machine failure by combining data from the advanced IoT sensors and maintenance logs as well as external sources,” according to the same Digital/McKinsey study mentioned above. Not only that, “asset productivity increases of up to 20% are possible, and overall maintenance costs may be reduced by up to 10%.”
The bottom line: machine learning is reinventing supply chain management
Not only has machine learning already realized tremendous value for the supply chain, but the very nature of this technology means that the possibilities are virtually endless. Algorithms continue to become more sophisticated, and, as new challenges arise, machine learning grows and evolves to meet them.
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by Elizabeth Hines | Sep 4, 2019 | Blog, Content Marketing, Marketing, Strategy
The biggest challenges for B2B marketing, according to a recent report? Finding leads that convert and engaging the right target audience.
Highlights:
- Measuring social media ROI is a challenge for 58% of respondents, and 39% report that proving ROI is the biggest hurdle to securing C-suite buy-in.
- Only 23% of brands have a dedicated social media team.
- 60% of marketers report content marketing is their most valuable technique for lead nurturing.
Chief Marketer’s 2019 B2B Marketing Outlook report is out, and it’s full of revealing statistics for B2B marketers industry-wide. The survey studied 209 B2B marketers in more than 20 verticals, getting a bird’s eye view of biggest challenges and trends in B2B marketing.
Here are the top 10 stats you need to be aware of.
10 B2B marketing stats from Chief Marketer’s 2019 report
1) For 58% of respondents, measuring ROI is the top challenge surrounding social media marketing.
Measuring social media ROI is notoriously difficult, though certainly not impossible. For well over half of the survey respondents, it proved the greatest challenge when it comes to social media.
65% of respondents reported engagement as one of their biggest social media challenge, while 45% cited the challenge of having enough content. Adequate bandwidth to respond to social followers and post frequently and inadequate social budget (24% each) were lower on the list of social concerns.
2) Only 23% of brands have a dedicated social media team.
We’ve written before about how social media management is a herculean task that falls all-to-often to an overworked marketing team. Chief Marketing’s survey found that, for a vast majority of B2B brands (75%), their marketing team is in charge of maintaining social media presence.
Even as social media is becoming increasingly effective at ushering leads through the sales funnel, only 23% of brands surveyed have invested in a dedicated social media team, while 15% are outsourcing their social media management.
3) Articles/blog posts and reviews/customer testimonials are tied as the two most effective types of content for moving prospects through the sales funnel.
45% of respondents reported that articles and blog posts, as well as reviews and customer testimonials, are the most effective content types for moving prospects through the sales funnel.
Following closely behind, 32% reported whitepapers and 31% reported video as most effective. Partner content, at 26%, came next, while social media is gaining efficacy, coming in at 22%.
Respondents reported that for all content types, the visual aspects were key. For Informa Engage, for example, more visual content is performing well, says Tricia Syed, Vice President for Marketing Strategy and Execution. “In some markets, traditional whitepapers and webinars are still hugely popular, but we’re getting more visual with e-books [to illustrate] data.”
4) 39% of survey respondents reported being unable to prove ROI to C-suite as the biggest obstacle for getting approval for marketing expenditures.
Just as proving social media ROI is a poses a challenge for B2B marketing, proving overall content marketing ROI to win C-suite buy-in can be equally daunting. 39% reported it as the biggest hurdle to getting marketing expenditures approved.
46% of respondents cited the challenge of budgets that are focused elsewhere, while 33% reported that executives still don’t understand the need for marketing expenditures.
5) For 60% of respondents, content marketing is the most valuable technique for lead nurturing.
Content marketing is reported by 60% of marketers as their most valuable technique for lead nurturing. Email marketing led the pack at 62%, while in-person marketing took a close third place at 57%. When it comes to lead nurturing for B2B marketing, social media was relatively low on the list, reported by only 20% of respondents as their most valuable technique.
6) Only 22% of respondents have an in-house editorial team dedicated to content creation.
While content marketing is overwhelmingly reported by marketers as being a highly effective technique for generating, nurturing, and converting leads, relatively few brands have chosen to invest in a dedicated in-house editorial team for content creation. Instead, a whopping 80% of marketers are charged with creating their own content.
“That’s a surprising disconnect,” says James Furbush, B2B marketing manager of Lord Hobo Brewing. “I’m not surprised marketing teams are creating content, but if you’re going to be that focused on content marketing, having an editorial team is an important investment.”
Perhaps even more surprisingly, only 23% of respondents are taking advantage of the opportunity to outsource content creation, an excellent alternative for companies who are unable to afford a dedicated in-house team.
7) 42% say that their organizations will increase martech budgets in 2019.
Martech, or the fusion of marketing and technology, is taking over B2B marketing. 42% of survey respondents reported that their martech budgets will be increasing in 2019, while 40% said that existing martech budgets will remain the same. Only 4% reported that they anticipate a decrease in martech budget.
When asked what types of martech they plan on investing in, 45% of respondents pointed to marketing automation, 43% to video, 40% to email, 38% to customer experience, and 37% to social media management.
Interestingly, despite all the discussion surrounding AI, only 9% of businesses surveyed report that they are considering investing in these technologies.
8) When it comes to generating new leads, 55% reported that finding leads that convert is their biggest challenge.
More than half of survey respondents pointed to the challenge of finding leads that ultimately convert as the greatest obstacle to generating new leads. 57% reported that their biggest challenge is getting targeted prospects to engage with their brands.
What’s interesting about these numbers is that, while marketers are reporting these issues as lead-generation obstacles, they are simultaneously pointing to content marketing as their most effective tool for lead nurturing and conversion.
9) For 44% of respondents, email is a top source of B2B leads.
When it comes to which channels are the largest sources of B2B leads, email leads the pack, with 44% of respondents putting it first. Online searches came in at a close second at 43%, and live events came in at 41%.
A respectable 36% of respondents cited content marketing as a top source of B2B leads, while 22% pointed to social media.
Knowing where leads are coming from is only part of the picture. Perhaps unsurprisingly, the channel that produced the leads with the highest ROI was email for just under half (49%) of survey respondents.
10) 56% say cost of conversion is the metric that matters most in marketing attribution.
When asked which metrics matter most in marketing attribution, cost of conversion topped the list at 56%, followed closely by amount of time to convert at 53%. Other important metrics included channel (34%), first click (29%), and last click (22%).
“At the end of the day, the most important takeaway when setting up campaign attribution is to think about your goal,” said one respondent. “Start with the end in mind, reverse engineer your marketing campaign, and set up ‘mile markers’ along the way to track trends in your prospects’ digital footprints.”
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by Elizabeth Hines | Jul 17, 2019 | Blog, Content Marketing, Current Events, Logistics, Marketing, Supply Chain
Here are four ways the Amazon effect is shaking up supply chain trends – and why it’s a net positive for the industry.
Highlights:
- More companies will start to tap into the gig economy in the last mile, and Uber-style delivery companies will emerge.
- To meet growing customer demand, same-day delivery will become increasingly standard.
- Supply chain leaders will be increasingly evaluated according to customer experience.
Here’s the thing about adversity: it has a tendency to test our strength, and, more often than not, it brings out the best in us. There’s no doubt that the meteoric ascendency of Amazon has created plenty of adversity for the retail, transportation, and supply chain industries. But as the corporation continues to shake up supply chain trends, it’s actually giving the industry an opportunity to sharpen and refine its practices.
Amazon’s dominance has already influenced supply chain trends in big ways. Industry-wide, companies have been compelled to reflect how they do business. In many cases, it’s been a painful process: businesses have had to reinvent, in everything from what and how processes are implemented to the choice of new technologies to purchase. But despite the difficulty, the reinvention process has the potential to pay big dividends in the long term.
Experts are predicting that there are four major ways in which Amazon will continue disrupting supply chain trends going forward.
4 ways Amazon will keep disrupting supply chain trends
1) Uber-style delivery companies
If you think e-commerce sales are high, you haven’t seen anything yet. Recent data from Statista predicts that e-commerce sales will grow as much as 25% by 2022, meaning that retail delivery will undergo analogous growth. As postal service prices rise, FedEx and UPS will likely need to make more deliveries themselves. Meanwhile, Amazon’s 3PL business is booming, putting pressure on the competition.
While these retail delivery services have not yet tapped into the gig economy, largely thanks to opposition from labor unions, it’s only a matter of time according to Convey CEO Rob Taylor. Taylor predicts that a deal will be “brokered between unions and 1099 labor, following in the footsteps of Uber and the taxi and public transportation industries’ unionization efforts.”
2) Same-day delivery
Same-day delivery, once a novelty, is increasingly a subject of consumer demand. PwC’s Global Consumer Insights Survey 2019 found that 40% of online shoppers are willing to pay extra for same-day delivery. To meet the demand retailers are investing in on-demand warehousing and other solutions for increasing localized inventory.
In addition, there’s the rise of drone delivery. Back in 2017, McKinsey estimated that the value of drone activity would reach $1 billion. More recent estimates, including one from ResearchandMarkets, set the value at $11.2 billion by 2022. It’s not long before same-day delivery will be necessary for businesses to compete.
3) Customer satisfaction metrics
As supply chain trends go, the type of metrics used to evaluate personnel may not seem particularly revolutionary. In fact, this type of shift is an indicator of sweeping cultural change. Writing for Fortune, Elementum CEO Nader Mikhail predicts that “tomorrow’s CEOs will come from an unlikely place: the supply chain.”
Customer expectations have been redefined, thanks to the Amazon effect, and businesses need leaders who are skilled at transforming overarching goals into many smaller variables. Where better to find such skills than among the ranks of supply chain leaders?
As a result, in addition to more traditional supply chain key performance indicators (KPIs), Taylor predicts that “net promoter score (NPS) and customer satisfaction (CSAT), which are leading indicators of customer happiness and loyalty, will play a greater role in the supply chain scorecard.” Essentially, supply chain and marketing goals will increasingly intersect.
4) Artificial Intelligence
Artificial Intelligence (AI) is among the most widely discussed supply chain trends in recent years. AI is helping supply chain leaders collate and analyze operational data, and “automating the ability to predict customer demand, forecast product availability, optimize routes for delivery, and better target and personalize communication with customers,” according to Taylor.
Amazon has invested heavily in AI technologies including order optimization, blockchain, warehouse robotics, and the Internet of Things. To keep up, Taylor predicts that “a new generation of supply chain leaders will likely require skills in AI that empower them to translate this highly technical information into business decisions and profitability.”
Navigating the Amazon effect on supply chain trends
When it comes to managing Amazon’s disruptive effects on supply chain trends, the industry will do best to look on them as opportunities. Amazon’s success is, according to Taylor, “pushing brands to modernize and align their teams around the central goal of improving customer experience.” The bottom line is that thanks to Amazon, supply chain companies need to be primarily focused on the customer in order to compete.
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by Elizabeth Hines | Jun 18, 2019 | Blog, Content Marketing, Logistics, Marketing, Strategy, Supply Chain, Website Development
The percentage of visitors that stay on your site is key to lead conversion and search engine rankings. Here are our top tips to reduce your website bounce rate. Highlights: A high bounce rate will compromise your site’s search engine rankings. Slow website load times...
