5 Ways to Combat the Supply Chain Talent Gap

5 Ways to Combat the Supply Chain Talent Gap

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.”

5) Rebrand the supply chain.

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?

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Are We Thinking About “Soft Skills” All Wrong?

Are We Thinking About “Soft Skills” All Wrong?

By calling them “soft skills,” are we shortchanging competencies that are critical for supply chain and procurement professionals to succeed?

This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.

One of the biggest stories in the world of Supply Chain and Procurement talent over the past few years has been the emerging importance of Soft Skills. Time was, the business world saw Supply Chain and Procurement as highly analytical fields, where the ability to organize and interpret data was paramount. Analytical skills are still important, of course. But as the field has become more strategic — with a greater impact on wider areas of business — professionals in the field have had to become stronger at advocating for it. No senior Procurement professional is going to get very far into a Procurement transformation without being able to advocate for their Procurement method and what it can deliver. No one is going to transform their organization’s Supply Chain without being able to explain whatever insights they’ve gleaned from data to senior management.

When we say “Soft Skills,” we generally mean:

  • Verbal communications
  • Written communications
  • Relationship-building skills
  • Presentation ability
  • The ever-elusive and hard-to-define-but-you-know-it-when-you-see-it “polish”

There’s no doubt they’re important, especially when it comes to moving into the senior ranks of leadership. But by calling them “soft skills,” are we really shortchanging them and treating them as ancillary to the “main,” “vocational” skills we ask for? Maybe it’s time to put them front and center.

They may be skills, but they’re not soft

Marketing guru and entrepreneur Seth Godin had an interesting post about the concept of “Soft Skills” and whether the way we think about them needs a revamp: “Let’s stop calling them ‘soft skills.’ They might be skills, but they’re not soft,” he says.

Godin’s basic point is that soft skills build a great workplace culture. And workplace culture isn’t an ancillary bonus to a business’s core function. It is a business’s core function. Godin doesn’t discount the importance of vocational skills. You can’t make a Supply Chain run without data. But for all the talk about strategy, a truly successful company succeeds not because of its strategy, but its culture — just like a truly successful career in business is often driven by soft skills rather than vocational skills.

His point is also that we don’t put as much effort into training soft skills as we do vocational skills, which might be because vocational skills are easier to measure. For example your typing speed (or for a Supply Chain role, your facility with SAP or JAD software) is much easier to measure than the kind of empathic awareness that makes a team sing. The result?

“Organizations hire and fire based on vocational skill output all the time, but practically need an act of the board to get rid of a negative thinker, a bully or a sloth (if he/she is good at something measurable).”

Rebranding soft skills as real skills

Godin’s suggestion is to rename soft skills “real skills” and break them down into new categories by which we might assess them:

  • Self Control
  • Productivity
  • Wisdom
  • Perception
  • Influence

He breaks these categories down into an exhaustive list of skills (“diplomacy in difficult situations,” “etiquette”) that’s definitely worth checking out, and worth assessing in new hires. It gets a little abstract, but we couldn’t agree more with Godin’s core point: It’s time to put “soft skills” front and center.

In Supply Chain and Procurement, which are the areas we recruit for, soft skills are taking on more relevance as automation begins to handle the nuts and bolts of how products come to market, and how companies work with suppliers. The function is becoming more nimble and more strategic, and the future belongs to those who are able to be strategic advocates — and the companies that prize this in their hires.

Yet in a field that is, by its very nature, obsessed with efficiency, measurement, and data, soft skills sometimes take a back seat.

We think it’s time to change that.

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Should You Freeze Hiring During Uncertain Economic Times?

Should You Freeze Hiring During Uncertain Economic Times?

When it comes to hiring and managing during turbulent times, one thing separates the wheat from the chaff: a progressive focus.

Despite an 8-year bull market, many businesses are still licking the wounds caused by the 2007 financial crisis. Add a volatile political climate and predictions of impending economic turbulence, and you can’t blame those growing wary of rapid growth or expansion opportunities.

But, as the supply chain is already suffering from a talent gap, can companies afford to slow or freeze hiring — or, even, to downsize? Research suggests that organizations that balance caution with a forward-looking talent-acquisition strategy may fair best through difficult economic times.

When risk pays off

Research by Harvard Business School faculty assessed the performance of 4,700 companies across three recessions, and found that only 9% came out in better positions. The success stories had in common a progressive focus, meaning that they were extremely selective about pruning investments and stayed on the watch for growth opportunities.

We’ve all heard anecdotes that support this research.

In the 1940s, when Hewlett-Packard was starting out, times were challenging for the nascent electronics company. But the founders took the tremendous risk of hiring legions of engineers, despite the economic downturn. Many, including the founders, credit the company’s success to this risky decision.

See the way forward by looking back

What does this mean for your business?

Claudio Fernández-Aráoz, senior advisor at the global executive search firm Egon Zehnder and executive fellow at Harvard Business School, offers a comparison to the Roman god Janos, the god of beginnings and endings. Janos is often represented with two heads, facing opposite directions. “His ability to look back is what enabled him to see way forward so clearly,” says Fernández-Aráoz. “His horizon was exceedingly long-term.”

Is your business accurately assessing risk and balancing caution with bold decision-making? Fernández-Aráoz describes how Egon Zehnder weathered the economic crisis following the dot-com bubble burst and 9/11: “A natural reaction would have been to obey the short-term signals and retrench and, indeed, that’s what most of our competitors did, dismissing up to 50% of their staffs. But we barely downsized. We continued to hire outstanding consultants and elected every single candidate who came up for partner during that period,” he writes.

Fernández-Aráoz credits these practices with his firm’s readiness to seize opportunity the moment the market began to recover. The take-away here is that while it’s crucial to mitigate risk during turbulent economic times, “it is those who stay calm, remember the past, and plan for the future who will triumph.”

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Sometimes you need non-team player

Sometimes you need non-team player

non-team player

Hiring someone who says he or she is not a team player sounds like a risky proposition, right? Few employers are, after all, searching for renegade employees or stubborn loners who refuse to interact with co-workers. But what if it actually turned out to be a good strategy? Researchers at the University of Tuebingen set out to examine the effects on applicant pools by stressing the need for teamwork in job ads. The conclusion of the study puts it like this: “Given the evidence of a possible downside, it is recommended that firms should never look for team players just because ‘everyone else is doing so.'”

The study analyzed survey data from 1,300 college students who had been asked to evaluate a number of job postings that outlined various requirements, including whether the applicant should be a team player or an independent task-oriented self-starter. Interestingly, what researchers found was that although the ads did indeed attract applicants who considered their teamwork skills to be a primary asset, they also discouraged people whose qualifications matched the job description with the exception of one criterion: social skills. As a result, the employer missed out on technically skilled or task-oriented candidates who took themselves out of the running before the race even began. The study went on:

“…considering that organizations always need employees with high task-related skills, but that they may not always need team players, they should carefully consider when the requirement for teamwork skills is listed in their job advertisements—because there is a downside to looking for team players.”

For organizations that truly need employees with an aptitude for collegial collaboration, the study shows ads that stress the importance of possessing teamwork skills do what they were intended to accomplish. But in other cases, where teamwork takes a backseat to specific talents or technical skills, the employer is likely to end up with a smaller pool of applicants than if that routine phrase had been left out of the job requirements.

People who don’t cite social acumen among their list of skills may not thrive at “water-cooler conversations” or rush to plan the next company outing, but they know how to get the job done and they do it well. If teamwork is irrelevant to their job description, isn’t that all we really need?


Fronetics Strategic Advisors is a leading management consulting firm. Our firm works with companies to identify and execute strategies for growth and value creation.

We advise and work with companies on their most critical issues and opportunities: strategy, marketingorganization, talent acquisition, performance management, and M&A support.

We have deep expertise and a proven track record in a broad range of industries including: supply chain, real estate, software, and logistics.

How to solve the supply chain talent crisis: a supply chain recruiter shares his ideas

How to solve the supply chain talent crisis: a supply chain recruiter shares his ideas

supply chain talent

The supply chain industry has a talent crisis. The question is: how can we solve this crisis? To answer this question I turned to Rodney Apple, founder of the SCM Talent Group.  Apple has worked as a supply chain recruiter for the majority of his 19+ year career within the staffing industry and he has filled more than 1,000 positions within the industry ranging from executive-level in Fortune 500 headquarters settings to leadership and staff-level roles across large networks of manufacturing and distribution facilities within North America.  Apple’s role affords him the ability to witness the talent crisis from the perspective of the industry, the company, and the job seeker.

Kate Lee: The supply chain talent crisis is a hot topic.  Is the job market as crazy as it is being made out to be?

Rodney Apple: The job market has been hot for years and there is always a crunch to find and source top supply chain talent. Baby Boomers are retiring in droves and there just aren’t enough people with the necessary skills and experience coming in to fill that gap. With that being said, I don’t think the job market is as crazy as the media makes it out to be. However, we still need the media to continue researching and reporting on this critical topic as this builds more awareness and helps to generate new ideas and solutions for solving the talent problem.

Lee: When it comes to supply chain talent, what is the biggest challenge?

Apple: We don’t have enough students at the K-12 levels that are saying “when I grow up, I want to be a Supply Chain Manager.” Many students coming up through our educational ranks don’t even know what supply chain is or they perceive supply chain as a blue collar industry where you either drive freight trucks or load and unload them at a warehouse dock.

There needs to be big thinking and big solutions to change this image at the macro level. The industry needs to make a concerted effort to communicate to K-12 students what supply chain is and what the career paths look like. Ultimately, it needs to find a way to brand supply chain as a top career choice. Investing into K-12 outreach programs and mass media campaigns, similar to how our military branches advertise for recruiting purposes, could be a great way to educate the future workforce about the supply chain and get them excited about pursuing degrees and careers within supply chain.

Lee: What other challenges do you see?

Many companies haven’t taken the initiative to develop best-in-class talent acquisition resources and programs. Companies that perform the best are the ones that treat the recruiting department like a strategic, value-added program versus a low-level, tactical HR cost center.

In addition, many companies are being too strict and inflexible with their hiring requirements. Instead of defining the job when they write out their job descriptions, they focus on defining the candidate by listing out a ridiculously long and unrealistic list of skills and qualifications that the “ideal candidate” must have to be “qualified”. This antiquated technique usually ends up deterring top candidates from applying and disqualifies candidates that have what it takes to do the job.

Lee: What can companies do to attract top talent?

Apple:

  • Develop a best-in-class talent acquisition strategy and program

o   People – hire the best talent sourcers and recruiters that you can find and make sure you have a properly staffed department so they’ll operate in a “proactive” versus “reactive” capacity.

o   Process –streamline the end-to-end talent acquisition process with the goal of alleviating administrative, burdensome tasks and unnecessary touch points.

o   System – implement a robust Applicant Tracking System, one that integrates with the company career site and ideally the HRIS or ERP system.

o   Employee Referral Program – referrals are typically the top source for hires so companies should invest into developing a best-in-class employee referral program. Get the CEO and all senior executives to champion the program so all employees are involved and incented to participate.

o   College Recruiting Program – partner with supply chain universities and proactively recruit students from these universities, early and often.

o   External Supply Chain Recruiting Partners – identify supply chain recruiting agencies that specialize in the areas where hiring help is needed the most.

  • Upgrade Career Branding Materials – Develop attractive branding/marketing materials to include a separate company career website that highlights company culture, history, key stats, job opportunities, career paths, etc. Incorporate interviews from employees and testimonials that illustrate why your company is a great place to work. In addition, learn how to write job descriptions that attract top supply chain talent.
  • Create a Supply Chain Leadership Development Program –This is a great and cost-effective way to attract top entry-level talent and aggressively train and ramp them up to speed by rotating them into different functional areas within the supply chain. GE is well known for having best-in-class leadership development programs.
  • Be open-minded when it comes to considering top talent from other fields/industries. Many candidates in other professionals have very transferable skill sets for careers within supply chain.
  • Develop a program for employing Veterans, candidates with disabilities and long-term unemployed.
  • Invest more into job training and mentoring programs e.g. supply chain certifications and tuition reimbursement.

Lee: What is the role of social media in recruitment?

Apple: Companies and their recruiters need to be on social media to establish their employment brand, to attract talent, and to share job openings and upcoming recruitment events.  Furthermore, social media can be leveraged by all employees as a talent acquisition tool. For example, companies could require all employees to distribute jobs out to their social media connections/networks.

Lee: What advice do you have for job seekers?

Apple: A job search should be conducted strategically, not haphazardly. It’s all about laying out a robust job search strategy with a corresponding action plan. In addition, networking is where job seekers should spend the bulk of their time versus applying online and waiting for the phone to ring.

Lee: Do you have any advice for job seekers trying to break into the supply chain industry?

Apple: Changing industries is tough to do but not impossible. Start by looking at what skills are transferrable and highlight these skills on your resume, LinkedIn profile, and in interviews. In some cases going back to school may be necessary. This may mean a degree program, or it could mean obtaining a supply chain certificate.

Networking is paramount.  Join local chapters of supply chain associations, attend their meetings and network your butt off.

Finally, remember that it may be necessary to take a step back in both job level and compensation. Often times taking one small step back in your career could result in three giant leaps forward.