by Fronetics | Nov 8, 2018 | Blog, Content Marketing, Current Events, Logistics, Marketing, Strategy, Supply Chain
Artificial intelligence (AI) is changing the way the global supply chain operates and may make most supply chain management companies obsolete in 5-10 years. What can your company expect and what are the best strategies for preparing?
AI has a significant presence in supply chain management. Leading companies already use AI to run predictive analytics and to automate repetitive, labor-intensive tasks like purchasing, invoicing, and customer service. But executives are still needed to make decisions after reviewing data.
[bctt tweet=”Authors from a recent study predict that in 5-10 years the supply chain will be run entirely by digital technologies that could eliminate the need for human oversight.” username=”Fronetics”]
According to a study from the Harvard Business Review, that’s about to change. In 5-10 years, the authors predict, the supply chain will be run entirely by digital technologies that could eliminate the need for human oversight. Blockchains can coordinate between the parties involved in flexible supply networks, improving transparency and crisis-response times. Robotics already automate warehouses and fulfillment centers, increasing efficiency and minimizing the risks of employee injury. Moreover, digital technologies are increasingly able to execute purchasing and inventory management tasks.
Digital control towers
The new nerve-center for leading organizations’ operations is the “digital control tower,” typically a room with walls of high definition screens showing real-time graphics and information on every step in the supply chain. Data analysts staff these rooms 24/7, monitoring the flow from order to delivery.
These control towers provide end-to-end visibility into global supply chains. Process bottlenecks and inventory shortfalls can be predicted and managed before problems develop. Digital control centers allow more predictive management styles based on up-to-date and accurate information, which results in increased customer focus and process efficiency. It is an operational model that is gaining popularity across business sectors.
What does this mean for supply chain management?
Technology will continue to replace human labor in supply chain management. As data analytics and self-learning technology develop, we can expect to see more kinds of jobs performed by AI. Planning for this trend towards automation is essential for all supply-chain companies.
The role of supply chain executives continues to change. Instead of managing people performing repetitive and transactional tasks, executives are working with a smaller number of highly specialized data experts to design information and material flows. The skill set associated with supply chain management will shift to focus on data analysis and algorithms, which will require new hiring or employee re-training. Finding skilled analysts to fill those roles will be crucial to organizations seeking to adapt to new supply chain conditions
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by Jennifer Hart Yim | Apr 26, 2018 | Blog, Current Events, Logistics, Strategy, Supply Chain, Talent
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!
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by Jennifer Hart Yim | Nov 30, 2017 | Blog, Leadership, Strategy
More and more companies are leveraging digital technologies to keep extra tabs on their employees, both in the office and at home.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
As part of our efforts to chronicle the ways the workplace is changing, we recently wrote about how more companies are adopting formal work from home policies. More organizations realizing that these policies – and other alternative working arrangements – can help them attract and retain top talent in a thriving job market. Working arrangements are becoming more flexible, but today we wanted to write about another countervailing trend.
The rise of digital communications (and applications like Skype, Google Docs, and Slack) has enabled work from home policies that let workers collaborate in real time across big geographic distances. Now, an article in the Guardian by Olivia Solon details how more companies are leveraging other digital technologies to keep extra tabs on their employees, both those who work in the office and those who telecommute.
Companies have long monitored their employees’ email, and blocked certain websites from company networks (as well as, of course, monitoring their physical presence in the office). But Solon writes about how more and more high-tech pieces of software are encouraging companies to monitor their employees’ screens, keystrokes, social media posts, private messaging, and even face-to-face interactions. As Solon puts it, “today’s workplace surveillance software is a digital panopticon” that makes employees assume they’re being watched so that they’ll stay on task and avoid any kind of distractions.
(For those who don’t know the reference, the Panopticon was an architectural design for a prison made by philosopher Jeremy Bentham in the 18th century in which a central guard tower, shadowed under darkness, kept watch over a circle of inmates who weren’t able to see at any given moment whether they were being observed.)
These technologies include Crossover’s WorkSmart, which bills itself as a “Fitbit for how you work” and offers managers a numerical score after measuring employees’ keystrokes. It also uses remote employees’ webcams to take photos of them every ten minutes and make sure they stay on task. Another technology named “Wiretap” – charmingly enough, for employees who don’t see themselves as criminals – measures the number of emails an employee sends, the number of times they open documents, the programs they use, and their keystrokes, alerting supervisors about any deviations from their normal numbers. Teramind, another employee surveillance solution, measures the amount of switching between applications that employees are doing, supposing that a high amount of switching signals a distracted employee who needs to be reprimanded. Another service, Qumram, monitors employees’ personal devices, including messaging apps like WhatsApp, to make sure that they aren’t discussing anything untoward.
It’s a new level of penetration into employees’ activity and private lives, and it all raises some interesting privacy and employee management issues. On the ethics front, it kind of comes down to this: does the idea of your employer taking a picture of you through your webcam every ten minutes give you the creeps?
Everyone has different opinions about the privacy aspects of these technologies, and whether it’s good for employees’ mental health to have all their computer activity monitored. But we’re interested in discussing these technologies from an employee management perspective:
From our perspective, what’s dangerous about this isn’t necessarily the technology itself – and believe us, it’s truly disconcerting to see one of these app’s founders literally saying “big brother is watching you,” (seriously, read the article!). But from our perspective, the issue is really the larger ethos of extreme micromanagement that this technology serves.
It’s reasonable for companies to want to protect their data. It’s fair for them to want to keep an eye on what their employees are doing – they are the ones paying for the time, after all. But the idea that an aggressive focus on every keystroke is going to improve white-collar productivity? To us, that’s specious at best. From our perspective, companies thrive when they trust their employees. They succeed when they grant them the autonomy to go above their “assigned duties” to find new projects, new lines of business, and new efficiencies – not when they obsessively monitor them to ensure those duties are being carried out.
Micromanagement often leads to loss of trust, a dearth of creativity, burnout, and high employee turnover. Is all of that worth it for the opportunity to catch an employee “stealing” ten minutes of the day to check social media, or use the bathroom if they’re working from home?
In our opinion, it’s not.
It’s telling that a lot of these software solutions use language that treats employees like children or criminals. Solon quotes the CEO of Awareness Technologies, who says “if you are a parent and you have a teenage son or daughter coming home late and not doing their homework, you might wonder what they are doing. It’s the same as employees.” Is it? Employees are people that you’ve vested with your trust. They’re people you’ve specifically hired because of their skills and creativity. They’re the critical success factor to your organization. So why should the assumption be that they’re up to no good? Isn’t it better to hire with trust in mind, and measure results to see if each employee deserves that trust?
The evidence is pretty clear that companies innovate when they treat employees like adults. Is it a coincidence that some of the most innovative companies in the world, including Google, Uber and 3M offer employees enough freedom at the office to work on non-assigned projects, and even nap?
There are legitimate reasons for this kind of surveillance: in parts of the financial industry, these solutions can prevent insider trading. They can also help monitor sexual harassment and inappropriate behavior. When you’re talking about management style, a certain amount of micromanagement is inevitable, even warranted. But in our opinion, these kinds of total digital employee surveillance schemes will most likely result in an atmosphere of fear and distrust in the workplace, which is the opposite of a productive environment.
But what are your thoughts? Do these heightened employee surveillance systems encourage excessive micromanagement, or do you think they stand to make workers more productive? We’re open to all perspectives and experiences. Let us know what you think in the comments!
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